(MENAFN) Mortgage applications in the United States fell last week as mortgage rates recovered from three-month lows, according to the latest report from the Mortgage Bankers Association (MBA). The composite market index, which measures mortgage applications, fell 2.6% on a seasonally adjusted basis in the week ended June 28. However, the unadjusted index showed a notable increase of 8% from the previous week.
Mortgage rates trended higher last week, topping the 7% mark, according to MBA chief economist Mike Fratantoni. The increase came despite continued market expectations that the Federal Reserve may cut interest rates later this year, fueled by the latest inflation data.
Fratantoni noted that purchase applications declined in the last week of June despite an increase in both new and existing inventory in recent months. Refinance activity also remains sluggish, although applications for traditional refinance loans increased slightly.
The average contracted rate for a 30-year fixed-rate mortgage rose to 7.03% from 6.93% last week, reversing recent lows. Similarly, rates for 15-year fixed-rate mortgages rose to 6.56% from 6.46% during the same period.
MBA research covers the majority of retail mortgage applications in the United States and provides insight into how housing market dynamics are evolving amid changing economic conditions and interest rate trends.
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