Purchase mortgage applications posted their second consecutive week of annual declines as homebuying trends in April continue to reflect economic volatility stemming from the Iran war.

In its latest weekly report of mortgage demand, the Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, notched 1.8% growth on a seasonally adjusted basis over the week ending April 10, helped by average mortgage rates on 30-year fixed-rate loans falling to their lowest level in a month.

“This dip in rates helped to support an increase in conventional refinance applications, which had declined for five consecutive weeks,” said Joel Kan, deputy chief economist of the MBA, in a statement accompanying Wednesday’s data release.

“Purchase activity remained subdued as potential homebuyers remained hesitant given the current economic uncertainty,” he added, citing volatility fueled by the Iran war and “its impact on energy and commodity prices.”

MBA data shows average mortgage rates for 30-year fixed-rate loans eased to 6.42% over the survey period, down from 6.51% the prior week and 6.57% over the week ending March 27. Kan noted that demand for government-backed purchase loans declined last week, while demand for conventional loans supported by Fannie Mae and Freddie Mac was flat.

Overall, seasonally adjusted purchase applications fell 1% from the previous week. The unadjusted purchase index was unchanged compared to the prior week and was down 3% from the same week one year ago.

Refinance borrowers, meanwhile, increased their share of overall mortgage demand last week. Applications for refinance loans rose to 45.5% of total applications, compared to 44.3% a week earlier. The refinance component index was 5% higher than the week before and was 15% higher than the same week one year ago.

Across government channels, the share of applications for loans insured by the Federal Housing Administration (FHA) slipped to 18.2% compared to 19.3% the previous week. The portion of applications for loans backed by the Department of Veterans Affairs declined to 15.7% from 16.1% a week earlier.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.14% from 6.22% the week prior.