US mortgage applications down 10%, falling from highest since January 2023

By Ovunc Kutlu

ISTANBUL (AA) - US mortgage applications fell 10% last week, retreating from 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 down 10.1% on a seasonally adjusted basis for the week ending Aug. 16. On an unadjusted basis, the index decreased 11% compared to the previous week.

"Both mortgage rates and mortgage applications have now stabilized after a few weeks of financial market volatility, which led to a quick drop in mortgage rates," 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 declined for the third consecutive week to 6.5%, the lowest since May 2023, from 6.55% in the previous week.

The rate for 15-year fixed-rate mortgages, however, increased to 6.04% from 5.96% during that period.

"Purchase applications also declined last week, reaching the lowest level since February 2024," said Kan. "Home sales have slowed despite rising inventory levels. Even with lower mortgage rates, potential buyers might be more selective now that there are more options."

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