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

Treasury yields responding to data showing cooling inflation, slowing job market, anticipated rate cut later this month, says economist

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.

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