US mortgage applications jump to 6-week high as rates continue to fall

ISTANBUL

US mortgage applications rose to their highest level in six months, as mortgage interest rates have continued to fall from their 23-year high, according to a report on Wednesday by the Mortgage Bankers Association (MBA).

The Market Composite Index, a measure of mortgage loan application volume, rose 3% on a seasonally adjusted basis for the week ending Nov. 17, compared to the previous week. On an unadjusted basis, however, the index decreased 0.1%.

"Mortgage applications increased to their highest level in six weeks, but remain at very low levels," MBA Vice President and Deputy Chief Economist Joel Kan said in a statement. "Purchase applications were up almost four percent over the week, on a seasonally adjusted basis, as both conventional and government purchase loans saw increases."

"Refinance applications increased 1.6 percent last week, but the level of refinances continues to be well below historical averages, given that most borrowers already have a rate well below current market rates," he added.

The 30-year fixed mortgage rate remained decreased to 7.41%, from 7.61% the week before. That rate fell 25 basis points for the week ending Nov. 3, recording the largest single-week decline since July 2022.

The average contract interest rate for a 15-year fixed-rate mortgage decreased to 6.89% from 6.94%.

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