The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. dropped 2.5 percent in the week ended March 19, following a 2.2 percent decrease in the previous week.

According to the report, refinance applications fell 5.1 percent, while applications to purchase a home rose 2.6 percent.

Meanwhile, the average fixed 30-year mortgage rate climbed from 3.28 percent to 3.36 percent, the highest since the week ended June 5.

“Mortgage rates have moved higher in tandem with Treasury yields, as the outlook for the U.S. economy continues to improve amidst the faster vaccine rollout and states easing pandemic-related restrictions,” noted Joel Kan, MBA’s associate vice president of economic and industry forecasting.