US mortgage applications fall 2.1% with rates at 23-year high

By Ovunc Kutlu

ISTANBUL (AA) - US mortgage applications fell last week as mortgage interest rates hover around their highest level in 23 years, according to a report on Wednesday by the Mortgage Bankers Association (MBA).

The Market Composite Index, a measure of mortgage loan application volume, fell 2.1% on a seasonally adjusted basis for the week ending Oct. 27 compared to the previous week. On an unadjusted basis, the index also declined 3%.

"Mortgage applications declined for the third straight week as mortgage rates remained elevated, with all rates around 30 basis points higher than they were a month ago," MBA Vice President and Deputy Chief Economist Joel Kan said in a statement.

The 30-year fixed mortgage rate slightly decreased to 7.86%, from 7.9%, still at the highest since 2000, while rates have been above the 7% level since early August 2023, according to Kan.

The average contract interest rate for a 15-year fixed-rate mortgage increased to 7.14% from 7.08%.

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