US mortgage rate falls to lowest in more than a month

ISTANBUL

The 30-year fixed mortgage rate in the US fell for the third consecutive week to its lowest level in more than a month, while mortgage applications saw a weekly gain, according to a report Wednesday by the Mortgage Bankers Association (MBA).

The Market Composite Index, a measure of mortgage loan application volume, rose 2.9% on a seasonally adjusted basis for the week ending March 24, compared to the previous week. On an unadjusted basis, the index also increased by 3% from the previous week.

The 30-year fixed rate declined to 6.45% last week, its lowest level in more than a month, marking the third decline in the past seven weeks. It stood at 6.48% for the week ending March 17 and at 6.79% the week before.

"Home-price growth has slowed markedly in many parts of the country, which has helped to improve buyers' purchasing power," said MBA Vice President and Deputy Chief Economist Joel Kan. 

"Most homeowners still have rates significantly lower than current levels, leaving only a small pool of borrowers with an incentive to refinance," he added.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.84%, from 6.02%, for the week.

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

ISTANBUL

"Home-price growth has slowed markedly in many parts of the country, which has helped to improve buyers' purchasing power," said MBA Vice President and Deputy Chief Economist Joel Kan. 

"Most homeowners still have rates significantly lower than current levels, leaving only a small pool of borrowers with an incentive to refinance," he added.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.84%, from 6.02%, for the week.

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