US mortgage applications fall as rate jumps to highest since December

Application activity weaker last week as rates moved higher, says economist

By Ovunc Kutlu

ISTANBUL (AA) - US mortgage applications fell last week as the 30-year mortgage rate climbed to its highest since early December, according to a report Wednesday by the Mortgage Bankers Association (MBA).

The market composite index, a measure of mortgage loan application volume, fell 2.3% on a seasonally adjusted basis for the week ending Feb. 9.

"Application activity was weaker last week, as mortgage rates moved higher across the board," Joel Kan, MBA’s vice president and deputy chief economist, said in a statement.

The 30-year fixed mortgage rate was up to 6.87%, rising from 6.8% the previous week and recording its highest since early December.

"Purchase applications remained subdued as elevated rates continue to add to affordability challenges along with still-low existing housing inventory," said Kan. "Refinance applications declined and remained depressed, with rates still higher than a year ago."

The average contract interest rate for 15-year fixed-rate mortgages, on the other hand, increased to 6.53% from 6.41%.

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

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