By Ovunc Kutlu
ISTANBUL (AA) - US mortgage applications declined last week, hitting their lowest since July, according to a Mortgage Bankers Association (MBA) report released Wednesday.
The market composite index, a measure of mortgage loan application volume, fell 6.7% on a seasonally adjusted basis for the week ending Oct. 18. On an unadjusted basis, the index was off 7% compared to the previous week.
"Application activity decreased to its lowest level since July, as both purchase and refinance applications saw declines," Joel Kan, MBA’s vice president and deputy chief economist, said in a statement. "Purchase applications continued to run stronger than last year’s pace for the fifth consecutive week."
"Even though rates have been on a recent upswing, they are over a full percentage point lower than a year ago, which has kept some homebuyers in the market," he added.
The average contract interest rate for 30-year fixed-rate mortgages remained unchanged at 6.52% last week.
The rate for 15-year fixed-rate mortgages, meanwhile, rose to 5.98% from 5.94%.
The MBA survey covers more than 75% of US retail residential mortgage applications.