After increasing 2.7% the previous week, mortgage application volume fell 0.6% on an adjusted basis during the week ended May 10, as the average rate for a 30-year, fixed-rate mortgage dipped slightly to 4.40%, down from 4.41%, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances fell 1% while applications for purchases also decreased 1%.
On an unadjusted basis, total volume fell 1% compared with the previous week. Applications for purchases fell 1% on an unadjusted basis but were up 7% compared with the same week one year earlier.
Joel Kan, associate vice president of economic and industry forecasting for the MBA, says “despite the third straight decline in mortgage rates, refinance applications decreased for the fifth time in six weeks, albeit by less than 1 percent.”
“It’s worth watching if ongoing global trade disputes lead to increased anxiety about the economy, which could cause some potential homebuyers to put off their home search until the uncertainty is resolved,” Kan adds in a statement.
The refinance share of mortgage activity remained unchanged from the previous week at 37.9%.
The adjustable-rate mortgage (ARM) share of activity decreased to 6.3%.
The average rate for a 5/1 ARM based on closings was 3.82%, down from 3.88%.