US mortgage demand eased last week as higher borrowing costs continued to weigh on potential homebuyers. The Mortgage Bankers Association said applications for home loans fell 1.4% in the week ended Aug. 15, reversing the prior week’s 10.9% jump. The average contract rate on a 30-year fixed mortgage with conforming loan balances edged up to 6.68% from 6.67%, remaining near the highest levels in two decades. In the bond market, the Treasury Department sold $16 billion of 20-year securities at a high yield of 4.876%, marginally below the 4.877% when-issued level, marking the second consecutive stop-through. Demand was softer than at the previous sale, with the bid-to-cover ratio slipping to 2.54 from 2.79 and indirect bidders taking 60.6% of the issue versus 67.4% in July. The lower yield, however, signaled investor willingness to accept slightly cheaper returns ahead of the release of Federal Reserve meeting minutes later in the day.