U.S. Markets

U.S. mortgage applications fall as loan rates rebound

FILE PHOTO: A "For Sale" sign is seen outside a home in Cardiff, California, U.S. on February 22, 2016. REUTERS/Mike Blake/File Photo

NEW YORK (Reuters) - U.S. mortgage applications decreased in the latest week as 30-year home borrowing costs rose near their seven-year peaks prompted by a selloff in U.S. bond market, the Mortgage Bankers Association said Wednesday.

The Washington-based group’s seasonally adjusted gauge on overall home loan applications fell 1.5 percent to 365.3 in the week ended June 8.

Interest rates on 30-year fixed-rate “conforming” home loans, whose balances are $453,100 or less, jumped to 4.83 percent from 4.75 percent the previous week. Three weeks ago, it was at 4.86 percent, the highest since April 2011, according to MBA data.

Reporting by Richard Leong; Editing by Chizu Nomiyama