US mortgage average interest rate falls after 2 months

WASHINGTON

The US average contract interest rate for a 30-year fixed-rate mortgages fell for the first time in over two months last week, the Mortgage Bankers Association (MBA) said on Wednesday.

The figure fell from 6.90% to 6.86% last week compared to the previous week, while mortgage applications rose 6.3% over the same period.

The MBA Purchase Index, which gauges all mortgage applications for single-family home purchases, hiked 12% while the Refinance Index, covering applications to refinance an already existing mortgage, declined 3%.

Meanwhile, the average contract interest rate for 15-year fixed-rate mortgages fell from 6.32% the previous week to 6.29% last week.

MBA Vice President Joel Kan said in a statement that buyers continue to stay in the market despite the recent hike in mortgage interest rates led by the rising stock of housing on the market, meaning that the economy remains strong.

• Mortgage Bankers Association
• US mortgage