Mortgage applications in US decline as rates reach highest since November 2023
Date
4/25/2024 3:09:22 AM
(MENAFN) According to a report released Wednesday by the Mortgage Bankers Association (MBA), mortgage applications in the US experienced a decline last week, coinciding with a surge in mortgage rates to their highest level since November 2023.
The market composite index, which measures mortgage loan application volume, decreased by 2.7 percent on a seasonally adjusted basis for the week ending April 19. On an unadjusted basis, the index saw a 2 percent decline compared to the previous week.
Joel Kan, MBA’s vice president and deputy chief economist, noted that the uptick in mortgage rates had a dampening effect on applications activity. He highlighted that mortgage rates continued to rise, reaching their highest levels since late 2023. This rise in rates added pressure to the mortgage market, influencing borrower behavior and contributing to the decline in application volume.
Specifically, the average contract interest rate for a 30-year fixed mortgage increased to 7.24 percent last week, marking its highest level since November 2023, up from 7.13 percent the previous week. Additionally, the average contract interest rate for 15-year fixed-rate mortgages rose to 6.75 percent from 6.64 percent.
"Purchase applications declined, as home buyers delayed their purchase decisions due to strained affordability and low supply," stated Kan.
The MBA survey includes over 75 percent of mortgage applications for retail residential properties in the United States.
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