The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. fell 5.1 percent in the week ended July 31, following a 0.8 percent drop in the previous week.

According to the report, refinance applications decreased 6.8 percent, while. applications to purchase a home dropped 1.8 percent.

Meanwhile, the average fixed 30-year mortgage rate decreased from 3.20 percent to record low 3.14 percent.

“MBA’s forecast calls for rates to remain at these low levels, which will continue to spur strong refinance activity and offer homeowners relief in the form of lower monthly mortgage payments during these uncertain economic times,” noted the MBA’s forecaster Joel Kan. “Purchase loan balances continued to climb, which is perhaps a sign that the still-weak job market and tighter credit for government loans are constraining some first-time homebuyers,” he added.