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US refinancing activity falls to lowest since June

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US mortgage refinancing activity fell to its lowest level since June last week as the average interest rate on 30-year fixed-rate mortgages posted its biggest rise in seven months, the Mortgage Bankers Association said on Wednesday.

[NEW YORK] US mortgage refinancing activity fell to its lowest level since June last week as the average interest rate on 30-year fixed-rate mortgages posted its biggest rise in seven months, the Mortgage Bankers Association said on Wednesday.

The group's seasonally adjusted index on applications for refinancing fell 8 per cent in the week ended Oct 7 to its lowest levels since the last week in June, MBA data showed.

The interest rate on 30-year mortgages, the most widely home loan type in the United States, averaged 3.68 per cent in the latest week, up from 3.62 per cent from the prior week. The 0.06 percentage point rise was the biggest weekly increase since March.

Mortgage rates have risen in step with US Treasury yields following encouraging domestic economic data and higher yields on European government bonds on speculation the European Central Bank might taper its bond purchases.

Benchmark 10-year Treasury yield has posted a series of multi-month highs in recent days. It touched 1.801 per cent early Wednesday, which was its highest level since early June.

REUTERS