US mortgage applications rise as rates fall for 6th week to lowest since February 2023

By Ovunc Kutlu

ISTANBUL (AA) - US mortgage applications rose last week, as rates declined for the sixth 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 1.4% on a seasonally adjusted basis for the week ending Sept. 6. On an unadjusted basis, however, the index decreased 10% compared to the previous week.

"Treasury yields have been responding to data showing a picture of cooling inflation, a slowing job market, and the anticipated first rate cut from the Federal Reserve later this month," Joel Kan, MBA’s vice president and deputy chief economist, said in a statement.

"With rates almost a full percentage point lower than a year ago, refinance applications continue to run much higher than last year’s pace," he added.

The average contract interest rate for 30-year fixed-rate mortgages declined for the sixth consecutive week to 6.29%, the lowest rate since February 2023, from 6.43% in the previous week.

The rate for 15-year fixed-rate mortgages, meanwhile, decreased to 5.71% from 5.98% during that period.

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