### Mortgage Applications See Uptick as Rates Trend Lower for Third Week
The Mortgage Bankers Association (MBA) has reported a notable increase in mortgage applications for the week ending May 17th, coinciding with a third consecutive week of declining 30-year fixed mortgage rates.
According to the MBA, the Market Composite Index—a key measure of mortgage loan application volume—rose by 1.9% last week following a 0.5% increase the previous week.
"Recent rate reductions have prompted some borrowers to take action, leading to a boost in both conventional and government refinance applications," noted Joel Kan, MBA's Vice President and Deputy Chief Economist. However, Kan cautioned, "Despite the decline in rates, purchase activity remains sluggish, showing an 11% dip from a year ago as potential buyers grapple with limited inventory and high listing prices."
Data from the report indicated a 7% surge in the Refinance Index from the previous week, marking a 21% increase compared to the same period last year.
Conversely, the MBA revealed that the unadjusted Purchase Index fell by 2% from the prior week and was down 11% year-over-year.
