The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. fell 4.0 percent in the week ended July 16, following a 16.0 percent climb in the previous week.

According to the report, refinance applications declined 2.8 percent, while applications to purchase a home plunged 6.4 percent.

Meanwhile, the average fixed 30-year mortgage rate rose from 3.09 percent to 3.11 percent. This was the first increase in the last three weeks.

“Limited inventory and higher prices are keeping some prospective homebuyers out of the market,” noted Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Refinance activity fell over the week, but because rates have stayed relatively low, the pace of applications was close to its highest level since early May 2021.”