US mortgage applications rose last week due to lower rates

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July 28th. (Reuters) – The number of applications for residential mortgages in the US increased in the last week, which was caused by increased activity of refinancing and a decrease in buying activity amid falling mortgage rates.

The Mortgage Bankers Association (MBA) said Wednesday that its market index rose 5.7% in a seasonally adjusted week ended July 23, up from a week earlier. This reflected an increase in the number of applications for refinancing existing loans by 9.3%, while the number of applications for purchase decreased by 1.6%.

The average contractual interest rate for a traditional 30-year mortgage fell to 3.01% from 3.11% the previous week, the lowest level since February.

“The Purchase Index is down for the second week in a row to its lowest level since May 2020 and is now declining year-on-year for the past three months,” said Joel Kahn, MBA’s deputy vice president of economic and industry forecasting. statement. “Potential buyers continue to be deterred by extremely high house prices and increased competition.” (Reporting by Evan Sully; editing by Anil D’Silva)

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