ISTANBUL

US mortgage applications rose last week, as rates declined for the fifth consecutive week, according to a Mortgage Bankers Association (MBA) report released Wednesday.

The market composite index, a measure of mortgage loan application volume, was up 1.6% on a seasonally adjusted basis for the week ending Aug. 30. On an unadjusted basis, the index increased 0.2% compared to the previous week.

"Purchase applications increased more than 3 percent over the week and are inching closer to last year’s levels, with government purchase applications leading the increase," Joel Kan, MBA’s vice president and deputy chief economist, said in a statement.

"Refinance applications were slightly down but continued to show strong annual gains as borrowers with higher rates have been refinancing to lower their monthly payments," he added.

The average contract interest rate for 30-year fixed-rate mortgages declined for the fifth consecutive week to 6.43% from 6.44% in the previous week.

The rate for 15-year fixed-rate mortgages, however, increased to 5.98% from 5.88% during that period.

The MBA survey covers more than 75% of US retail residential mortgage applications.