By Ovunc Kutlu
ISTANBUL (AA) - US mortgage applications increased last week, as mortgage rates retreated from their highest level in a month, according to a Mortgage Bankers Association (MBA) report released Wednesday.
The market composite index, a measure of mortgage loan application volume, jumped 15.6% on a seasonally adjusted basis for the week ending June 7. On an unadjusted basis, the index soared 26% compared to the previous week.
"On a seasonally adjusted basis and compared to the holiday-adjusted level from the prior week, purchase activity also increased," Mike Fratantoni, MBA’s chief economist, said in a statement.
"Multiple data sources are now indicating that home inventory levels, while still historically low, are up significantly from last year at this time. This is good news for many prospective homebuyers who have been frustrated by the lack of homes on the market," he added.
The average contract interest rate for 30-year fixed-rate mortgages declined to 7.02%, from 7.07% in previous week that marked the highest level since early May.
The rate for 15-year fixed-rate mortgages, meanwhile, decreased to 6.60% from 6.75% during that period.
The MBA survey covers more than 75% of US retail residential mortgage applications.