The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. dropped 2.5 percent in the week ended April 23, following an 8.6 percent surge in the previous week. According to the report, applications to purchase a home plunged 4.8 percent, while refinance applications decreased 1.1 percent.

Meanwhile, the average fixed 30-year mortgage rate decreased from 3.20 percent to 3.17 percent, the lowest level since the end of February.

“Even with a few weeks of lower rates, most borrowers have likely already refinanced, which is why activity has decreased in seven of the last eight weeks,” noted Joel Kan, MBA’s associate vice president of economic and industry forecasting.