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FINWIRES

MBA US Mortgage Applications Reverse in Week Ended June 12; Mortgage Rates Hold Steady

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Mortgage applications fell by 3.8% in the week ended June 12 after a 10.8% increase in the previous week, as average 30-year fixed mortgage rates held steady, according to Mortgage Bankers Association data released Wednesday.

Applications for refinancing loans fell by 5%, while new purchase applications declined by a seasonally adjusted 3%.

The average contract interest rate for 30-year fixed mortgages with loan balances of $832,750 or less remained at 6.60%.

"Last week's CPI data showed that inflation continued to move higher, putting upward pressure on rates early in the week, but growing optimism regarding the opening of the Strait of Hormuz brought rates down again by the end of the week," said Mike Fratantoni, MBA's senior vice president and chief economist.

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