Mortgage applications in the US dove last week to the lowest level in a month as rates increased, according to a report Thursday by the Mortgage Bankers Association (MBA).
The Market Composite Index, a measure of mortgage loan application volume, decreased 4.4% on a seasonally adjusted basis for the week ending June 30, compared to the previous week. On an unadjusted basis, however, the index increased 6%.
The 30-year fixed mortgage rate increased to 6.85% — the highest rate since the end of May.
“Purchase applications decreased for the first time in a month, as homebuyers remained sensitive to rate changes,” MBA Vice President and Deputy Chief Economist Joel Kan said in a statement.
“Rates are still over a percentage point higher than a year ago, and housing affordability is still a challenge in many parts of the country,” he added.
The average contract interest rate for a 15-year fixed-rate mortgage increased to 6.3%, from 6.23%, for the week.
The MBA survey covers more than 75% of US retail residential mortgage applications.
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