ISTANBUL

US mortgage applications fell last week, despite mortgage rates dipping to their lowest in five months, according to a Mortgage Bankers Association (MBA) report that was released Wednesday.

The market composite index, a measure of mortgage loan application volume, was down 2.2% on a seasonally adjusted basis for the week ending July 19. On an unadjusted basis, the index declined 2% compared to the previous week.

"Purchase applications decreased as ongoing affordability challenges persist with rates at their current levels and with home-price appreciation still strong in many markets," Joel Kan, MBA’s vice president and deputy chief economist, said in a statement.

The average contract interest rate for 30-year fixed-rate mortgages fell to 6.82% from 6.87% the previous week.

The rate for 15-year fixed-rate mortgages, meanwhile, declined to 6.21% from 6.49%.

The MBA survey covers more than 75% of US retail residential mortgage applications.