The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. decreased 4.2 percent in the week ended May 21, following a 1.2 percent gain in the previous week. This marked the biggest drop since the week ended April 2.

According to the report, refinance applications plunged 7.2 percent, while applications to purchase a home rose 1.7 percent.

Meanwhile, the average fixed 30-year mortgage rate increased from 3.15 percent to 3.18 percent, the largest level since the end of April.

“Demand is robust throughout the country, but homebuyers continue to be held back by the lack of homes for sale and rapidly increasing home prices,” noted Joel Kan, an MBA economist.