By Ovunc Kutlu
ISTANBUL (AA) - The 30-year fixed mortgage rate in the US rose for the first time in six weeks while 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, fell 8.8% on a seasonally adjusted basis for the week ending April 14, compared to the previous week. On an unadjusted basis, the index declined 8%.
The 30-year fixed mortgage rate increased 6.43% last week, ending five consecutive weeks of decline. It stood at 6.30% for the week ending April 7 and 6.40% the week before that.
"Last week’s increase in mortgage rates prompted a pullback in application activity. With more first-time homebuyers in the market, we continue to see increased sensitivity to rate changes," said MBA's Chief Economist Vice President and Deputy Chief Economist Joel Kan.
The average contract interest rate for a 15-year fixed-rate mortgage increased to 5.89%, from 5.78%, for the week.
The MBA survey covers more than 75% of US retail residential mortgage applications.