US mortgage applications for home purchases rise for third week

US mortgage applications for home purchases rose for a third week even as borrowing costs remained elevated.

The Mortgage Bankers Association index of applications for home purchases rose 2.8 per cent in the week ended Jun 23 to an almost two-month high of 170.3. Combined with an increase in the refinancing index, the overall measure of mortgage applications also climbed to the highest level since early May.

The contract rate on a 30-year fixed mortgage ticked up 2 basis points to 6.75 per cent, data out on Wednesday (Jun 28) showed.

The survey, which has been conducted weekly since 1990, uses responses from mortgage bankers, commercial banks and thrifts. The data cover more than 75 per cent of all retail residential mortgage applications in the US. BLOOMBERG