US mortgage applications fall for 7th consecutive week

By Ovunc Kutlu

ANKARA (AA) - US mortgage applications fell for a seventh consecutive week, according to a report released Wednesday by the Mortgage Bankers Association (MBA).

The Market Composite Index, a measure of mortgage loan application volume, fell 0.1% on a seasonally adjusted basis for the week ending Nov. 4, compared to the previous week. On an unadjusted basis, the index decreased 2% compared to the previous week.

The 30-year fixed rate remained above 7% for the third consecutive week, still close to its highest level since 2002.

"Mortgage rates edged higher last week following news that the Federal Reserve will continue raising short-term rates to combat high inflation," the MBA’s Vice President and Deputy Chief Economist Joel Kan said in a report.

The average contract interest rate for 15-year fixed-rate mortgages rose to 6.4%, from 6.37%, for the week.

After the Fed raised interest rates for 75 basis points for the fourth consecutive time on Nov. 2, Chair Jerome Powell said it is "very premature" to think about pausing rate hikes.