US Mortgage Applications Fall

The volume of mortgage applications in the US fell by 8.9% from the previous week in the last week of January, extending the 8.5% pullback from the earlier period to trim the combined 47% surge that had taken place since the start of the year, according to data compiled by the Mortgage Bankers Association. Applications fell for a second week despite the drop in mortgage rates as aggressive winter weather drove potential buyers to refrain from going to showings, while markets continued to assess how the Freddie Mac and the Fannie Mae would comply with President's Trump order to purchase $200 billion in mortgage-backed securities. Applications for a mortgage to purchase a new home sank by 14%, underscoring the impact of Winter Storm Fern, driving potential buyers to be snowed in. Meanwhile, applications for contracts to refinance a mortgage, which are sensitive to short-term changes in interest rates, fell by a softer 5% from the previous week.

The volume of mortgage applications in the US fell by 8.5% from the previous week in the period ending January 23rd, trimming the combined 47% surge since the start of the year, according to data compiled by the Mortgage Bankers Association. The pullback was aligned with a fresh increase in benchmark mortgage rates, which rose to a three-week high on a bounce for longer maturity Treasury yields, while markets continued to assess how the Freddie Mac and the Fannie Mae would comply with President's Trump order to purchase $200 billion in mortgage-backed securities. Applications for contracts to refinance a mortgage, which are sensitive to short-term changes in interest rates, fell by 16% from the previous week. Meanwhile, applications for a mortgage to purchase a new home were loosely flat.

The volume of mortgage applications in the US rose by 14.1% from the previous week in the period ending January 16th, extending the 28.5% surge in the previous period, according to data compiled by the Mortgage Bankers Association. The sharp back-to-back increases were aligned with lower mortgage rates, with the rate on a benchmark 30-year mortgage dropping to a 16-month low of 6.16%. The surge took place despite some stubbornness in long-dated Treasury yields after US President Trump stated he would order the Fannie Mae and Freddie Mac to buy $200 billion in mortgage-backed securities. Applications for contracts to refinance a mortgage, which are sensitive to short-term changes in interest rates, rose by 20% from the previous week. Meanwhile, applications for a mortgage to purchase a new home rose by 5%.