US Mortgage Applications Rebound

Mortgage applications in the US rose by 1.7% from the previous week in the first week of May, trimming two straight periods of drops, according to data compiled by the Mortgage Bankers Association. The slight rebound took place despite continuously high borrowing costs, with benchmark mortgage rates rising to their highest in five weeks. Applications for a mortgage to buy a new home rose by 4% in the period, reflecting some traction for new residences after the stall since the start of the war in the Middle East in March. Meanwhile, applications for a contract to refinance a mortgage, which is more sensitive to short-term changes in interest rates, eased by 1%.

Mortgage applications in the US dropped by 4.4% from the previous week in the last week of April, extending the 2.6% drop in the previous week, according to data compiled by the Mortgage Bankers Association. The drop was aligned with the 8bps increase in benchmark mortgage rates, prompted by an increase in Treasury yields of longer maturities in the period as soaring energy prices, evidence of higher underlying inflation and a robust labor market promoted bets of a Fed hike this year. Applications for a contract to refinance a mortgage, which are sensitive to short-term changes in interest rates, fell by 5%. In turn, applications for a mortgage to purchase a new home fell by 3.7%.

Mortgage applications in the US fell by 1.6% from the previous week on the period ending April 24th, trimming the 7.9% jump from the earlier period, according to data compiled by the Mortgage Bankers Association. The slight pullback was aligned with a 2bps increase in the benchmark mortgage rate that is also compiled by the MBA, tracking the increase in long-term Treasury yields as upside inflation risks from higher energy costs limited the room for rate cuts by the Federal Reserve. Applications for a contract to refinance a mortgage, which are more sensitive to short-term changes in rates, fell by 4.4%. In turn, applications for a mortgage to purchase a new home, inched higher by 1.1%.