US mortgage rates hit 14-year high

By Gokhan Ergocun

ISTANBUL (AA) - Mortgage rates in the US are at 6.52% -- the highest since 2008 for a 30-year fixed loan, Mortgage Bankers Association's (MBA) data showed Wednesday.

The industry group said mortgage applications fell 3.7% in the last week versus the previous week.

"With rates now more than double what they were a year ago, the pace of refinancing is running at a 22-year low and last week was more than 80 percent below last year’s level,” according to Joel Kan, the MBA's vice president. "Similarly, purchase activity was 29 percent lower than a year ago, with higher rates and economic uncertainty weighing on buyers’ decisions.”

The National Association of Realtors also said Wednesday that pending home sales waned for a third consecutive month, down 2% in August from July, mainly due to the high mortgage rates.