The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. fell 1.8 percent in the week ended June 26, following an 8.7 percent decline in the previous week.

According to the report, refinance applications decreased 2.2 percent, while applications to purchase a home dropped 1.3 percent.

Meanwhile, the average fixed 30-year mortgage rate edged down from 3.30 percent to record low 3.29 percent.

“The weakening in activity is potentially a signal that pent-up demand is starting to wane and that low housing supply is limiting prospective buyers’ options,” noted Joel Kan, an MBA economist. “The average purchase application loan size increased to a record high in our survey - more proof that tight inventory conditions are leading to faster price growth.”