By Ovunc Kutlu
ISTANBUL (AA) - US mortgage applications rose last week as mortgage rates fell to their lowest level in 15 months, according to a Mortgage Bankers Association (MBA) report released Wednesday.
The market composite index, a measure of mortgage loan application volume, was up 6.9% on a seasonally adjusted basis for the week ending Aug. 2. On an unadjusted basis, the index increased 6% compared to the previous week.
"Mortgage rates decreased across the board last week and mortgage application volume reached its highest level since January of this year," Joel Kan, MBA’s vice president and deputy chief economist, said in a statement.
The average contract interest rate for 30-year fixed-rate mortgages fell to 6.55%, its lowest level since May 2023, from 6.82% from the previous week, "following dovish communication from the Federal Reserve and a weak jobs report, which added to increased concerns of an economy slowing more rapidly than expected," according to Kan.
The rate for 15-year fixed-rate mortgages, meanwhile, decreased to 6.03% from 6.27%.
The MBA survey covers more than 75% of US retail residential mortgage applications.