US mortgage applications fall to two-month low amid higher rates

US MORTGAGE rates rose last week, curbing demand for those looking to buy a home.

The contract rate on a 30-year fixed mortgage rose by 6 basis points to 6.93 per cent in the week ended July 28, according to Mortgage Bankers Association data out on Wednesday (Aug 2).

That took an index of home-purchase applications down to the lowest in nearly two months, and dragged down the overall measure of applications, which also includes refinancing.

Mortgage rates have climbed in recent months back toward levels last seen in the early 2000s.

While it is unclear whether the Federal Reserve will raise borrowing costs again in September, officials are expected to keep interest rates elevated for some time until they’re convinced inflation is on a sustained downward trend.

The survey, which has been conducted weekly since 1990, uses responses from mortgage bankers, commercial banks and thrifts.

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The data cover more than 75 per cent of all retail residential mortgage applications in the US. BLOOMBERG