US mortgage applications rise as rates fall to 3-month low

'Lower rates, however, still not enough to entice refinance borrowers back,' says economist

By Ovunc Kutlu

ISTANBUL (AA) - US mortgage applications increased last week, as mortgage rates declined to their lowest in more than three months, according to a Mortgage Bankers Association (MBA) report released Wednesday.

The market composite index, a measure of mortgage loan application volume, rose 0.8% on a seasonally adjusted basis for the week ending June 21. On an unadjusted basis, the index plummeted 10% compared to the previous week.

"Purchase applications did see a small increase after adjusting for the Juneteenth holiday," Joel Kan, MBA’s vice president and deputy chief economist, said in a statement.

"Lower rates, however, were still not enough to entice refinance borrowers back, as most continue to hold mortgages with considerably lower rates," he added.

The average contract interest rate for 30-year fixed-rate mortgages declined to 6.93%, which marked the lowest in more than three months.

The rate for 15-year fixed-rate mortgages, meanwhile, fell slightly to 6.46% from 6.47% during that period.

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

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