The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. fell 3.1 percent in the week ended August 30, following a 6.2 percent drop in the previous week.

According to the report, refinance applications declined 7 percent, while applications to purchase a home rose 4 percent.

Meanwhile, the average fixed 30-year mortgage rate decreased to 3.87 percent from 3.94 percent.

“Ongoing trade tensions between the U.S. and China led to volatile, yet declining Treasury rates last week, causing the 30-year fixed mortgage rate to fall to 3.87%, its lowest level since November 2016,” notes Joel Kan, MBA’s associate vice president of economic and industry forecasting.