US mortgage rates on the rise

While the average interest rate for a 30-year mortgage (home loan) in the US hit its highest level since March at 6.69 percent last week, there was a decline in mortgage applications.

According to data from the Mortgage Bankers Association (MBA), mortgage applications decreased 4.6 percent in the week ending May 19 compared to the previous week.

The average interest rate for a 30-year mortgage in the country rose from 6.57 percent to 6.69 percent, the highest level recorded since March.

In the same period, the average interest rate for a 15-year mortgage increased from 5.96 percent to 6.15 percent.

In his assessment of the data, MBA Vice President Joel Kan said there has yet to be a sustained increase in purchase applications as interest rates are highly volatile and home stocks are still low.

Noting that refinancing activity remains limited, Kan said that uncertainty over the US borrowing limit and guidance given by some US Federal Reserve (Fed) officials last week increased expectations. bond rates and mortgage rates.

Kan noted that economic data released last week also showed the economy was still resilient.

On the other hand, according to Mortgage News Daily, the average interest rate for a 30-year mortgage rose above 7 percent yesterday. (AA)