The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. decreased 0.7 percent in the week ended October 9, following a 4.6 percent jump in the previous week.

According to the report, refinance applications fell 0.3 percent, while applications to purchase a home dropped 1.6 percent.

Meanwhile, the average fixed 30-year mortgage rate dropped from 3.01 percent to a fresh record-low of 3.00 percent.

“Applications for government mortgages offset some of the overall decline by increasing 3%, driven by a solid gain in government purchase applications and an 11% jump in VA refinance applications,” noted Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Housing supply is a challenge for many aspiring buyers, but activity should continue to stay strong the rest of the year.”