Washington: The US average contract interest rate for 30-year fixed-rate mortgages experienced a decline last week, marking the first drop in over two months, as reported by the Mortgage Bankers Association (MBA) on Wednesday. The rate decreased from 6.90% to 6.86%, while mortgage applications saw a notable increase of 6.3% during the same period. According to Anadolu Agency, the MBA Purchase Index, which tracks all mortgage applications for single-family home purchases, surged by 12%. In contrast, the Refinance Index, which covers applications to refinance existing mortgages, saw a decline of 3%. Additionally, the average contract interest rate for 15-year fixed-rate mortgages slightly decreased from 6.32% to 6.29% last week. Joel Kan, MBA Vice President, stated that buyers continue to remain active in the market despite the recent rise in mortgage interest rates. This activity is supported by the increasing availability of housing stock, indicating that the overall economy remains robust.