US mortgage applications rise 5.4% despite rates climbing to 4-week high

Home prices in many markets supported by low inventory, resilient housing demand for available homes, says economist

By Ovunc Kutlu

ISTANBUL (AA) - US mortgage applications rose 5.4% last week, despite mortgage interest rates climbing to their highest in four weeks, according to a report Wednesday by the Mortgage Bankers Association (MBA).

The Market Composite Index, a measure of mortgage loan application volume, increased 5.4% on a seasonally adjusted basis for the week ending Sept. 15, compared to the previous week. On an unadjusted basis, the index soared 16%.

The 30-year fixed mortgage rate climbed to 7.31%, which is also the highest since December 2000.

"Home prices in many markets have been supported by low inventory and resilient housing demand for available homes," MBA Vice President and Deputy Chief Economist Joel Kan said in a statement. "The average loan size on a purchase application was $416,800, the highest level in six weeks."

The average contract interest rate for a 15-year fixed-rate mortgage, on the other hand, fell to 6.62% last week.

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

Kaynak: