US Mortgage Applications for Purchases Drop for a Fourth Week

US mortgage applications for home purchases fell for a fourth week as 30-year fixed rates held close to an almost seven-month high.

The Mortgage Bankers Association index of applications for home purchases dropped 1.7% in the week ended June 2 to 151.7, the second-lowest level since 1995. The contract rate on a 30-year fixed mortgage decreased 10 basis points to 6.81%, according to the data out Wednesday.

The five-year adjustable-rate mortgage surged 54 basis points to 5.93%, the highest in MBA data back to 2011.

Home Purchase Applications Gauge Second-Lowest Since 1995 | Borrowing costs slipped in latest week but remained elevated

“Purchase activity is constrained by reduced purchasing power from higher rates and the ongoing lack of for-sale inventory in the market, while there continues to be very little rate incentive for refinance borrowers,” Joel Kan, MBA deputy chief economist, said in a statement.