Investing.com - The number of mortgage applications in the U.S. fell last week, as borrowers exited the market before an expected increase in U.S. interest rates, industry data showed on Wednesday.
In a report, the Mortgage Bankers Association said their mortgage market index, a measure of mortgage loan application volume, decreased by a seasonally adjusted 1.1% in the week ending December 11 to 419.4. That follows a gain of 1.2% to 424.1 in the preceding week.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances held steady at 4.14%, holding close to the highest level since July.
"Some borrowers may have moved to lock in current rates in advance of the Fed's likely increase this week," said Michael Fratantoni, chief economist for the MBA.
The survey covers over 75% of U.S. retail residential mortgage applications, according to MBA.
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