US mortgage applications rise 7.4% as rate falls for 5th week

ISTANBUL

US mortgage applications showed a weekly increase of 7.4%, while the 30-year fixed rate fell for the fifth consecutive week, according to a report released Wednesday by the Mortgage Bankers Association (MBA).

The Market Composite Index, a measure of mortgage loan application volume, rose 7.4% on a seasonally adjusted basis for the week ending Feb. 3 compared to the previous week. On an unadjusted basis, the index jumped 8% compared to the previous week.

The 30-year fixed mortgage rate fell to 6.18% – its fifth consecutive weekly decline.

"Both purchase and refinance applications increased last week and have shown gains in three of the past four weeks because of lower rates," MBA Vice President and Deputy Chief Economist Joel Kan said in a report.

"Purchase activity that was put on hold last year due to the quick runup in rates is gradually coming back as rates ease and housing demand remains strong, driven by supportive demographics and the ongoing strength in the job market," he added.

The average contract interest rate for 15-year fixed-rate mortgages increased to 5.64% from 5.5% for the week.

The MBA survey covers over 75% of all US retail residential mortgage applications.