US mortgage applications fall as rates rebound from 3-month low

'Mortgage rates moved higher even as latest inflation data has kept expectations alive for Fed rate cut later this year,' says economist

US mortgage applications fell last week, as mortgage rates rebounded from their lowest in more than three months, according to a Mortgage Bankers Association (MBA) report released Wednesday. The market composite index, a measure of mortgage loan application volume, was down 2.6% on a seasonally adjusted basis for the week ending June 28. On an unadjusted basis, however, the index jumped 8% compared to the previous week. "Mortgage rates moved higher last week, crossing the 7 percent mark, even as the latest inflation data has kept market expectations alive for a rate cut from the Fed later this year," Mike Fratantoni, MBA’s chief economist, said in a statement. "Purchase applications decreased the final full week of June, even as both new and existing inventories have increased over the past few months," he said. "Refinance activity also remains subdued – although there was a slight increase in applications for conventional refinance loans." The average contract interest rate for 30-year fixed-rate mortgages increased to 7.03%, from 6.93% last week when it marked the lowest in more than three months. The rate for 15-year fixed-rate mortgages, meanwhile, climbed to 6.56% from 6.46% during that period. The MBA survey covers more than 75% of US retail residential mortgage applications.