By Ovunc Kutlu
ANKARA (AA) - US mortgage applications fell for a sixth consecutive week, according to a report released Wednesday by the Mortgage Bankers Association (MBA).
The Market Composite Index, a measure of mortgage loan application volume, fell 0.5% on a seasonally adjusted basis for the week ending Oct. 28, compared to the previous week. On an unadjusted basis, the index decreased 1% compared to the previous week.
The 30-year fixed rate decreased for the first time in more than two months to 7.06% but it remains close to its highest level since 2002.
"These elevated rates continue to put pressure on both purchase and refinance activity and have added to the ongoing affordability challenges impacting the broader housing market, as seen in the deteriorating trends in housing starts and home sales," MBA’s Vice President and Deputy Chief Economist Joel Kan said in the report.
The average contract interest rate for 15-year fixed-rate mortgages fell to 6.37%, from 6.39%, for the week.
The refinance share of mortgage activity increased to 28.6% of total applications, from 28.2% the previous week. The adjustable-rate mortgage share of activity fell to 11.8% of total applications, according to the report.