The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. tumbled 6.9 percent in the week ended June 25, following a 2.1 percent gain in the previous week. This marked the first decline in total mortgage application volume in three weeks and the largest fall since mid-February.

According to the report, refinance applications plunged 8.2 percent, while applications to purchase a home decreased 4.8 percent.

Meanwhile, the average fixed 30-year mortgage rate rose from 3.18 percent to 3.20 percent, the highest in two months.

“Mortgage rates were volatile last week, as investors tried to gauge upcoming moves by the Federal Reserve amidst several divergent signals, including rising inflation, mixed job market data, strong consumer spending, and a supply-constrained housing market that has led to rapid home-price growth,” noted Michael Fratantoni, chief economist at the Mortgage Bankers Association.