US mortgage applications steady as rates climb over 7% again

By Ovunc Kutlu

ISTANBUL (AA) - US mortgage applications remained almost unchanged as mortgage rates climbed over 7% again, according to a Mortgage Bankers Association (MBA) report released Wednesday.

The market composite index, a measure of mortgage loan application volume, rose 0.1% on a seasonally adjusted basis for the week ending April 5. On an unadjusted basis, the index increased 0.2% compared with the previous week.

"Mortgage rates moved higher last week as several Federal Reserve officials reiterated a patient posture on rate cuts," Joel Kan, MBA’s vice president and deputy chief economist, said in a statement.

"Inflation remains stubbornly above the Fed’s target, and the broader economy continues to show resiliency. Unexpectedly strong employment data released last week further added to the upward pressure on rates," he added.

The average contract interest rate for a 30-year fixed mortgage rate increased to 7.01% last week, from 6.91% the previous week.

The average contract interest rate for 15-year fixed-rate mortgages, meanwhile, rose to 6.46% from 6.35%.

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