By Ovunc Kutlu
ISTANBUL (AA) - US mortgage applications declined last week as mortgage interest rates increased for the third straight week, according to a report on Wednesday by the Mortgage Bankers Association (MBA).
The Market Composite Index, a measure of mortgage loan application volume, fell 0.8% on a seasonally adjusted basis for the week ending Aug. 11, compared to the previous week. On an unadjusted basis, the index declined 2%.
"The 30-year fixed mortgage rate increased for the third straight week, reaching 7.16 percent, matching October 2022’s rate and the highest rate since 2001," MBA Vice President and Deputy Chief Economist Joel Kan said in a statement.
The rate stood at 7.09% for the week ending Aug. 4 -- the highest since November 2022.
"Overall applications decreased because of these higher rates, as both purchase and refinance applications ended the week at their lowest levels since February 2023," he added.
The average contract interest rate for a 15-year fixed-rate mortgage increased to 6.57%, from 6.51%, for the week.
The MBA survey covers more than 75% of US retail residential mortgage applications.