US Home Purchase Applications Hit Lowest Since 1995 on Rate Rise
- Mortgage applications for purchases declined for a sixth week
- US 30-year mortgage rate climbs to 7.31%, highest since 2000
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US mortgage applications for home purchases dropped last week to an almost three-decade low, indicating residential real estate is reeling from the recent spike in borrowing costs.
The Mortgage Bankers Association index of home-purchase applications fell 5% to 142, the lowest level since 1995. The Wednesday data also showed that the contract rate on a 30-year fixed mortgage increased 15 basis points to 7.31% in the week ended Aug. 18 — the highest since late 2000.