Ongoing global trade disputes could cause some potential homebuyers in the United States to put off their home search, according to the Mortgage Bankers Association (MBA) on Wednesday.
For the week ending May 10, the MBA's market composite index, a measure of mortgage loan application volume, dropped 0.6 percent from a week earlier.
Besides, the purchase index without seasonal adjustment decreased 1 percent from the previous week.
"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," said Joel Kan, associate vice president of Economic and Industry Forecasting for the MBA.
The MBA's data also showed that the refinance index, a measurement of mortgage refinance activity, edged down 1 percent from the previous week.
"Despite the third straight decline in mortgage rates, refinance applications decreased for the fifth time in six weeks, albeit by less than 1 percent," said Kan.