US Mortgage Applications Rise As Rates Fall From Highest Since November

US mortgage applications increased last week, while mortgage rates declined from their highest since November, according to a Mortgage Bankers Association (MBA) report released Wednesday.

The market composite index, a measure of mortgage loan application volume, rose 2.6% on a seasonally adjusted basis for the week ending May 3. On an unadjusted basis, the index increased 3% compared to the previous week.

"Mortgage applications increased for the first time in three weeks, with refinances up 5 percent," Mike Fratantoni, MBA's chief economist, said in a statement.

"Treasury rates and mortgage rates fell last week on the news of a slowing job market, with wage growth at the slowest pace since 2021, and the Federal Reserve's announced plans to ease quantitative tightening in June and to maintain its view that another rate hike is unlikely," he added.

The average contract interest rate for a 30-year fixed mortgage rate fell to 7.18% from 7.29% during the previous week when it hit the highest since November.

The average contract interest rate for 15-year fixed-rate mortgages, declined to 6.6% from 6.74%.

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