An indicator of the number of mortgage applications to buy homes in the U.S. fell last week to its lowest level since February, suggesting that rising home prices are hampering an incipient recovery in demand due to falling mortgage rates.

The Mortgage Bankers Association’s index of mortgage applications to purchase a home fell 5.2% to 130.6 in the week ended August 16. The number of applications to refinance also fell after hitting a two-year high the previous week.

The contract rate on a 30-year fixed-rate mortgage fell another 4 basis points to 6.5%, still at its lowest level since May last year, MBA data showed Wednesday. The rate on a 15-year fixed-rate mortgage rose, and the average 5-year adjustable-rate mortgage posted its biggest increase since the start of the year.

Mortgage rates track U.S. Treasury bonds, and the yield on the 10-year U.S. Treasury note has recently fallen amid expectations that the Federal Reserve will begin cutting its benchmark interest rate next month. Policymakers including Chairman Jerome Powell are set to speak at the central bank’s annual symposium in Jackson Hole, Wyoming, later this week.

Despite cheaper mortgage rates on the prospect of looser Fed monetary policy, high home prices have pushed housing affordability to its lowest levels in decades.

The MBA survey, conducted weekly since 1990, draws on responses from mortgage lenders, commercial banks and savings banks. The data covers more than 75% of all residential mortgage applications in the United States.