US mortgage applications climb to highest since January 2023

Rates on both 30- and 15-year fixed rate mortgages decrease for 2nd consecutive week, says economist

By Ovunc Kutlu

ISTANBUL (AA) - US mortgage applications rose last week to their highest level since January 2023, according to a Mortgage Bankers Association (MBA) report released Wednesday.

The market composite index, a measure of mortgage loan application volume, was up 16.8% on a seasonally adjusted basis for the week ending Aug. 9. On an unadjusted basis, the index increased 15% compared to the previous week.

"Overall applications increased almost 17 percent to the highest level since January 2023, driven by a 35 percent increase in refinance applications," Joel Kan, MBA’s vice president and deputy chief economist, said in a statement.

"Rates on both 30- and 15-year fixed rate mortgages decreased for the second consecutive week, and combined with the previous week’s rate moves, spurred another strong week for application activity as borrowers with higher rates took the opportunity to refinance," he added.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances fell to 6.54% from 6.55% in the previous week.

The rate for 15-year fixed-rate mortgages, meanwhile, decreased to 5.96% from 6.03% during that period.

The MBA survey covers more than 75% of US retail residential mortgage applications.

Kaynak: