US mortgage rate rises for 2nd time in 7 weeks; applications increase

By Ovunc Kutlu

ISTANBUL (AA) - The 30-year fixed mortgage rate in the US rose for a second time in seven weeks while mortgage applications saw a weekly increase, 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 April 21, compared to the previous week. On an unadjusted basis, the index increased 5%.

The 30-year fixed mortgage rate increased to 6.55% -- its highest in more than a month. It stood at 6.43% for the week ending April 14 when it rose for the first time in six weeks.

"Both conventional and government home purchase applications increased last week," said MBA's Chief Economist Vice President and Deputy Chief Economist Joel Kan.

"However, activity was still nearly 28 percent below last year’s pace, as high mortgage rates and low supply have slowed the market this year, even as home-price growth has decelerated in many markets across the country," he added.

The average contract interest rate for a 15-year fixed-rate mortgage increased to 6.03%, from 5.89%, for the week.

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