US mortgage applications fall 1.8% as rates hold steady

By Ovunc Kutlu

ISTANBUL (AA) - US mortgage applications declined almost 2% last week as rates held steady, according to a report Wednesday by the Mortgage Bankers Association (MBA).

The Market Composite Index, a measure of mortgage loan application volume, fell 1.8% on a seasonally adjusted basis for the week ending July 21, compared to the previous week. On an unadjusted basis, the index declined 1.5%.

The 30-year fixed mortgage rate remained unchanged at 6.87%. For the week ending July 7, the index had soared to 7.07% -- the highest since November 2022.

"Refinance applications remained lackluster, running 30 percent behind year-ago levels," MBA Vice President and Deputy Chief Economist Joel Kan said in a statement. "Many borrowers remain on the sidelines given current rates and persistent affordability challenges."

The average contract interest rate for a 15-year fixed-rate mortgage increased to 6.37%, from 6.36%, for the week.

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