(Bloomberg) — U.S. mortgage rates fell last week to their lowest since early March, providing a breather for would-be homebuyers and an industry seeking a much-needed boost in demand.
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The Mortgage Bankers Association said on Wednesday that the contract rate for a 30-year fixed mortgage fell 13 basis points to 6.87% during the week that ended July 12. Rates for the 15-year mortgage fell to 6.49%.
Mortgage rates move in tandem with Treasury yields, which also fell sharply last week after government data showed a general abatement of inflationary pressures, encouraging traders to bet the Federal Reserve is more likely to cut rates as soon as September.
The seasonally adjusted measure of mortgage applications for home purchases fell 2.7%, the report showed. Data can fluctuate around holidays; the most recent weekly data came just after Independence Day. On an unadjusted basis, purchase applications rose 22%.
The MBA's adjusted composite application index, which includes home purchases and refinances, rose 3.9%. The group's refinance index rose 15.2%.
The MBA survey has been conducted weekly since 1990 and uses responses from mortgage bankers, commercial banks and thrift banks. The data covers more than 75 percent of all mortgage applications in the United States.
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