Mortgage applications rose 1.1% last week as mortgage rates held steady in the wake of the Federal Reserve’s decision to leave its benchmark interest rate unchanged, the Mortgage Bankers Association said, citing its Weekly Mortgage Applications Survey.         

The average contract interest rate for conforming 30-year mortgages of $806,500 or less inched two basis points higher to 6.86% from 6.84% the week before, while the rate for 30-year fixed-rate mortgages backed by the Federal Housing Administration rose to 6.59% from 6.56%.    

By type, purchase applications were up 2.3% week over week and 18% year over year, while refinancing activity was little changed from the week before. 

“The news for the week was the growth in purchase applications,” MBA Chief Economist Mike Fratantoni said in a release. “Despite the economic uncertainty, the increase in home inventory means there are additional properties to buy, unlike the last two years, and this supply is supporting more transactions.”