US mortgage applications rise 2.8% as rates continue to fall from 23-year high

ISTANBUL

US mortgage applications increased last week as mortgage interest rates have continued to fall from their highest level in 23 years, according to a report Wednesday by the Mortgage Bankers Association (MBA).

The Market Composite Index, a measure of mortgage loan application volume, rose 2.8% on a seasonally adjusted basis for the week ending Nov. 10, compared to the previous week. On an unadjusted basis, the index increased 0.4%.

"Although Treasury rates dipped midweek, mortgage rates were little changed on average through the week," MBA Vice President and Deputy Chief Economist Joel Kan said in a statement.

"Both purchase and refinance applications increased to the highest weekly pace in five weeks but remain at very low levels. Despite the recent downward trend, mortgage rates at current levels are still challenging for many prospective homebuyers and current homeowners," he added.

The 30-year fixed mortgage rate remained unchanged at 7.61%, compared to the week before; however, it is around 30 basis points lower than three weeks ago, according to Kan.

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 6.94% from 6.98%.

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