Mortgage applications in the USA fell for the third week in a row, while the 30-year interest rate reached the highest level in 2.5 months.
According to the US Mortgage Bankers Association (MBA) mortgage application research, the seasonally adjusted market index of mortgage application activity, which includes refinancing and purchase loans, fell 5.7 percent to 188.5 points in the week ended February 24.
According to the weekly report published by MBA and shared with ForeksHaber via e-mail, the purchasing index decreased by 5.6 percent to 138.8 points, while the refinancing index decreased by 5.5 percent to 444.0 points.
In the given week, the 30-year mortgage rate rose 9 basis points from 6.62 percent to 6.71 percent, reaching its highest level since 6.90 percent on November 11, 2022. The 3-week increase in interest rates reached 53 basis points. The 30-year loan interest rate increased by 52 basis points on a 4-week average and by 256 basis points compared to the same period of the previous year.
MBA Vice President and Deputy Chief Economist Joel Kan said, “Since the signals that inflation will not fall as fast as expected, the pressure on interest rates has also pushed mortgage rates up. Those who intend to buy a house stepped aside in the face of interest rates.”
While the 15-year interest rate increased by 15 basis points from 5.98 percent to 6.13 percent, the 5-year ARM loan interest rate increased by 7 basis points from 5.66 percent to 5.73 percent.
The 30-year jumbo (greater than $647,200) loan interest rate remained at 6.44 percent.