US mortgage applications fall as rates hover around their highest since November

By Ovunc Kutlu

ISTANBUL (AA) - US mortgage applications declined last week, while mortgage rates hovered around their highest since November, according to a Mortgage Bankers Association (MBA) report released Wednesday.

The market composite index, a measure of mortgage loan application volume, fell 2.3% on a seasonally adjusted basis for the week ending April 26. On an unadjusted basis, the index decreased 1.4% compared with the previous week.

"Inflation remains stubbornly high, and this trend is convincing markets that rates, including mortgage rates, are going to stay higher for longer," Joel Kan, MBA’s vice president and deputy chief economist, said in a statement.

"Application volume for both purchase and refinances declined over the week and remain well below last year’s pace," he added.

The average contract interest rate for a 30-year fixed mortgage rate increased to 7.29% last week, from 7.24% the previous week, still at its highest since November.

The average contract interest rate for 15-year fixed-rate mortgages, on the other hand, decreased to 6.74% from 6.75%.

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