US mortgage applications up 3.7% despite rising rates

Mortgage rates increased slightly last week, but ‘there continues to be an upward trend in purchase activity,’ according to economist

By Ovunc Kutlu

ISTANBUL (AA) - US mortgage applications increased 3.7% last week despite rising mortgage rates, according to a report Wednesday by the Mortgage Bankers Association (MBA).

The market composite index, a measure of mortgage loan application volume, rose 3.7% on a seasonally adjusted basis for the week ending Jan. 19. On an unadjusted basis, the index was down 4% compared with the previous week.

"Mortgage rates increased slightly last week, but there continues to be an upward trend in purchase activity," Joel Kan, MBA’s vice president and deputy chief economist, said in a statement.

"Refinance applications declined over the week and remained at low levels. There is still little incentive for homeowners to refinance with rates at these levels," he added.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances rose to 6.78% last week, from 6.75% the week before.

The average contract interest rate for a 15-year fixed-rate mortgage, meanwhile, increased to 6.31% from 6.24%.

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

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