US mortgage applications rise 2.5% as rates withdraw from 23-year high

By Ovunc Kutlu

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

The Market Composite Index, a measure of mortgage loan application volume, fell 2.5% on a seasonally adjusted basis for the week ending Nov. 3 compared to the previous week. On an unadjusted basis, the index rose 1%.

"Last week’s decrease in rates was driven by the U.S. Treasury’s issuance update, the Fed striking a dovish tone in the November FOMC statement, and data indicating a slower job market," MBA Vice President and Deputy Chief Economist Joel Kan said in a statement. "Applications for both purchase and refinance loans were up over the week but remained at low levels."

The 30-year fixed mortgage rate fell 25 basis points to 7.61%, from 7.86%, recording the largest single-week decline since July 2022, according to Kan.

The average contract interest rate for a 15-year fixed-rate mortgage decreased to 6.98% from 7.14%.

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