US Mortgage Applications Rise Sharply

The volume of mortgage applications in the US rose by 11% from the previous week in the final week of February, extending the slight increases from the two previous periods to mark the fourth strongest week for mortgage applications since 2022, according to data compiled by the Mortgage Bankers Association. The increase matched the pullback in benchmark mortgage rates from the previous week, which stuck through the turn of the month as a flight to safety on US financial markets drove yields on long-term US treasury securities to fall sharply. Applications to refinance an existing mortgage, which are more sensitive to short-term changes in interest rates, jumped by 14.3%. In turn, applications for a mortgage to purchase a new home rose by 6.1%.

The volume of mortgage applications in the US inched higher by 0.4% from the previous week in the third week of February, extending the 2.8% increase in the earlier period, according to data compiled by the Mortgage Bankers Association. The improvement was slight despite the fresh plunge in benchmark mortgage rates, which hit their lowest level in nearly four years, as soft risk appetite drove investors to pile on long-dated Treasury securities this month. Demand for contracts to refinance a mortgage, which are more sensitive to short-term changes in interest rates, jumped 4%. In turn, applications for a mortgage to buy a home fell 5%, with the report reflecting insufficient new supply that drove homebuyers to sit on the sidelines.

The volume of mortgage applications in the US rose by 2.8% from the previous week in the second week of February, trimming the cumulative 20% drop from the declines in the three previous weeks, according to data compiled by the Mortgage Bankers Association. The slight improvement was in line with the 4bps decrease in benchmark mortgage rates, testing the 16-month low from late January, aligned with the decline in long-term Treasury securities on expectations of multiple rate cuts by the Fed this year. Demand for contracts to refinance a mortgage, which are more sensitive to short-term changes in interest rates, jumped 7%. In turn, applications for a mortgage to buy a home fell 3%, with the report reflecting insufficient new supply that drove homebuyers to sit on the sidelines.