The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. fell 1.1 percent in the week ended July 12, following a 2.4 percent decrease in the previous week.

According to the report, applications to purchase a home dropped 3.8 percent, while refinance applications rose 1.5 percent.

Meanwhile, the average fixed 30-year mortgage rate increased to 4.12 percent from 4.04 percent.

“Refinance applications increased, with activity reaching its highest level in a month, driven mainly by FHA refinance applications. Historically, government refinance activity lags slightly in response to rate changes,” said Joel Kan, an MBA economist.