US Mortgage Applications Rise for 4th Week

The volume of mortgage applications in the US rose by 3.2% from the previous week in the first week of March, recording its fourth consecutive period to the second highest level since 2022. The increase took place despite a fresh increase in benchmark mortgage rates, as the outbreak of war in Persian Gulf countries triggered a surge in energy prices and lifted the yield in long-dated Treasury securities. Applications for a mortgage to purchase a new home jumped by 7.8% after having underperformed the total figure for multiple weeks. In the meantime, applications for a contract to refinance a mortgage, which are more sensitive to short-term changes in interest rates, inched higher by 0.5%.

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.