Dive Brief:

• Mortgage applications fell 1.6% last week, the Mortgage Bankers Association reported Wednesday. The drop represented the fifth consecutive week of a decrease in applications.
• Fixed 30-year mortgage rates averaged 4.07% for the week ending May 22, up from 4.04% the week before.
• The bump in interest rates was the fourth consecutive increase, according to the MBA. 

Dive Insight:

The string of dips in mortgage applications could be a bad sign for the recovering housing market. The rise in rates may be making potential buyers wary of committing to a major purchase.

Industry experts associate mortgage rates with the likelihood of potential buyers to commit to purchasing. However, that correlation hasn't always rung true, as Zillow recently reported that relaxed lending may not spark the wave of homebuying many expect.