The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. declined 4.1 percent in the week ended January 22, following a 1.9 percent decrease in the previous week.

According to the report, refinance applications fell 5.0 percent, while applications to purchase a home dropped 4.0 percent.

Meanwhile, the average fixed 30-year mortgage rate rose from 2.92 percent to 2.95 percent, the highest since the week ended November 15.

“Since hitting a recent low in April 2020, the average purchase loan amount has steadily risen — in line with the accelerating home-price appreciation occurring in most of the country because of strong demand and extremely low inventory levels,” noted Joel Kan, an MBA economist. “In a sign that borrowers are increasingly more sensitive to higher rates, large declines in government purchase applications and refinance applications pulled overall activity lower,” Kan added. “The refinance index has now declined for two-straight weeks.”