ANKARA: The US 30-year fixed mortgage rate climbed above the 6 per cent mark last week for the first time since 2008, according to Washington-based Mortgage Bankers Association (MBA) on Wednesday.
The rate rose to 6.01 per cent from 5.94 per cent for the week ending Sept 9, “which is essentially double what it was a year ago,“ Joel Kan, MBA’s associate vice president of economic and industry forecasting, said in a statement reported by Anadolu.
“Higher mortgage rates have pushed refinance activity down more than 80 per cent from last year and have contributed to more homebuyers staying on the sidelines,“ he said.
The average contract interest rate for 15-year fixed-rate mortgages also increased to 5.30 per cent, from 5.23 per cent, according to MBA.
The Market Composite Index, which measures mortgage loan application volume, fell 1.2 per cent from a week earlier, while it declined 12 per cent compared to the previous week, it added.-Bernama
