US mortgage applications rise as rates fall for 4th straight week

By Ovunc Kutlu

ISTANBUL (AA) - US mortgage applications rose last week, as rates declined for the fourth consecutive week, according to a Mortgage Bankers Association (MBA) report released Wednesday.

The market composite index, a measure of mortgage loan application volume, was up 0.5% on a seasonally adjusted basis for the week ending Aug. 23. On an unadjusted basis, the index decreased 1% compared to the previous week.

"Mortgage applications were slightly higher, driven by marginally stronger purchase activity," Joel Kan, MBA’s vice president and deputy chief economist, said in a statement.

"As observed in recent weeks, despite lower rates, purchase applications have not moved much. Prospective homebuyers are staying patient now that rates are moving lower and for-sale inventory has started to increase," he added.

The average contract interest rate for 30-year fixed-rate mortgages declined for the fourth consecutive week to 6.44%, the lowest since April 2023, from 6.5% in the previous week.

The rate for 15-year fixed-rate mortgages decreased to 5.88% from 6.04% during that period.

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