By Ovunc Kutlu
ISTANBUL (AA) - The 30-year fixed mortgage rate in the US fell as mortgage applications saw a weekly decline, according to a report Wednesday by the Mortgage Bankers Association (MBA).
The Market Composite Index, a measure of mortgage loan application volume, declined 1.2% on a seasonally adjusted basis for the week ending April 28, compared to the previous week. On an unadjusted basis, the index fell 0.4%.
The 30-year fixed mortgage rate decreased five basis points to 6.5%. It stood at 6.55% for the week ending April 21 -- its highest in more than a month.
"Home purchase activity has been very sensitive to rates and local market trends, including the very low supply of existing-home inventory," said MBA's Chief Economist Vice President and Deputy Chief Economist Joel Kan.
"However, newly constructed homes account for a growing share of inventory, giving more options for prospective buyers," he added.
The average contract interest rate for a 15-year fixed-rate mortgage decreased to 6.01%, from 6.03%, for the week.
The MBA survey covers more than 75% of US retail residential mortgage applications.