US mortgage applications rise 0.5% as rates fall for 3rd week

ISTANBUL

Mortgage applications in the US rose last week as rates fell for the third consecutive week, according to a report on Wednesday by the Mortgage Bankers Association (MBA).

The Market Composite Index, a measure of mortgage loan application volume, increased 0.5% on a seasonally adjusted basis for the week ending June 16, compared to the previous week. On an unadjusted basis, however, the index fell 1%.

The 30-year fixed mortgage rate declined to 6.73% -- down four basis points from 6.77% the previous week.

"Refinance applications continued their decline after the previous week’s increase, with the refinance share of applications just below 27 percent," MBA Vice President and Deputy Chief Economist Joel Kan said in a statement.

The average contract interest rate for a 15-year fixed-rate mortgage increased to 6.26%, from 6.25%, for the week.

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