US mortgage applications rise 2.3%, rates at highest since 2000

By Ovunc Kutlu

ISTANBUL (AA) - US mortgage applications rose 2.3% last week, while mortgage interest rates remained steady at their highest level since 2000, according to a report Wednesday by the Mortgage Bankers Association (MBA).

The Market Composite Index, a measure of mortgage loan application volume, increased 2.3% on a seasonally adjusted basis for the week ending Aug. 25, compared to the previous week. On an unadjusted basis, the index rose 1%.

The 30-year fixed mortgage rate remained unchanged at 7.31% -- the highest since December 2000.

"Treasury yields peaked early in the week and did move lower by the end, which may have spurred some activity," MBA Vice President and Deputy Chief Economist Joel Kan said in a statement. "Mortgage applications for home purchases and refinances increased for the first time in five weeks but remained at low levels."

"Purchase applications increased but were still 27 percent lower than a year ago, as elevated mortgage rates and tight housing inventory continue to weigh on home buying activity," added Kan.

The average contract interest rate for a 15-year fixed-rate mortgage also remained unchanged at 6.72% last week.

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