The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. dropped 4.0 percent in the week ended May 28, following a 4.2 percent decline in the previous week.

According to the report, refinance applications fell 4.6 percent, while applications to purchase a home decreased 3.1 percent.

Meanwhile, the average fixed 30-year mortgage rate edged down from 3.18 percent to 3.17 percent.

“Tight housing inventory, obstacles to a faster rate of new construction, and rapidly rising home prices, continues to hold back purchase activity,” noted Joel Kan, an MBA economist. “The government purchase index declined to its lowest level in over a year and has now decreased year over year for five straight weeks.”