Mortgage rates remain high in the US, applications continue to fall

While the average interest rate on a 30-year mortgage (home loan) in the US decreased for the first time after a seven-week increase, mortgage applications continued to decline.

According to data from the Mortgage Bankers Association (MBA), mortgage applications decreased 2.1 percent in the week ending October 27 compared to the previous week.

During this period, home purchase applications decreased 1 percent and refinancing applications decreased 4 percent compared to the previous week.

The average interest rate for a 30-year mortgage in the country decreased from 7.9 percent to 7.86 percent, declining for the first time after increasing for 7 consecutive weeks.

During the same period, the average interest rate for a 15-year mortgage increased from 7.08 percent to 7.14 percent.

INTEREST RATES REMAIN HIGH, APPLICATIONS DECREASE

MBA Vice President Joel Kan said applications declined for the third consecutive week as mortgage interest rates remained high.

Noting that the average interest rate for a 30-year mortgage has decreased slightly, Kan said the rate remains near 23-year highs.

Kan said the impact of high interest rates continues to be felt in both the purchase and refinance markets, noting that purchase applications have fallen to their lowest level since 1995 and refinance applications have fallen to their lowest level. lowest level since January 2023. (BRITISH AUTOMOBILE CLUB)