30-year mortgage rate rises to 7.03% from 6.93% (Il Sole 24 Ore Radiocor) - Washington, 04 Jul - US mortgage rates moved higher last week even as recent inflation data has kept market expectations alive for a rate cut from the Federal Reserve later this year.

According to the Mortgage Bankers Association (MBA) the average contract interest rate for 30-year fixed-rate mortgages breached the 7% threshold to reach 7.03% from 6.93% a week ago.

Rising interest rates have undermined the housing industry, sending the cost of mortgages soaring.

'Purchase applications decreased the final full week of June, even as both new and existing inventories have increased over the past few months," said Mike Fratantoni, MBA's SVP and chief economist. "Refinance activity also remains subdued - although there was a slight increase in applications for conventional refinance loans.' In data released yesterday the MBA said mortgage applications in the US fell 2.6% in the week ending June 28 on a seasonally adjusted basis from one week ago.

The Refinance Index decreased 2% from the previous week, and was 29% higher from a year ago.

The seasonally adjusted Purchase Index fell 3% from a week earlier while the unadjusted Purchase Index rose 7% from a week earlier.

AAA-Sje

(RADIOCOR) 04-07-24 14:50:45 (0412) 5 NNNN