October 12, 2016 / 12:31 PM / 9 months ago

UPDATE 1-U.S. refinancing activity falls to lowest since June

2 Min Read

(Adds details on the latest U.S. mortgage data)

NEW YORK, Oct 12 (Reuters) - U.S. mortgage refinancing activity fell to its lowest level since June last week as the average interest rate on 30-year fixed-rate mortgages posted its biggest rise in seven months, the Mortgage Bankers Association said on Wednesday.

The group's seasonally adjusted index on applications for refinancing fell 8 percent in the week ended Oct. 7 to its lowest levels since the last week in June, MBA data showed.

The interest rate on 30-year mortgages, the most widely home loan type in the United States, averaged 3.68 percent in the latest week, up from 3.62 percent from the prior week. The 0.06 percentage point rise was the biggest weekly increase since March.

Mortgage rates have risen in step with U.S. Treasury yields following encouraging domestic economic data and higher yields on European government bonds on speculation the European Central Bank might taper its bond purchases.

Benchmark 10-year Treasury yield has posted a series of multi-month highs in recent days. It touched 1.801 percent early Wednesday, which was its highest level since early June. (Reporting by Richard Leong; Editing by Chizu Nomiyama)

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