US Mortgage Applications Ease

The volume of mortgage applications in the US fell by 2.2% on the week to July 3rd, extending the muted movements from the two previous weeks, according to data compiled by the Mortgage Bankers Association. The low deviation was consistent with the relative stability in benchmark mortgage rates, with the 30-year fixed rate rising a single basis point to 6.58%, despite the jump in longer-term Treasury yields in the period. Applications to refinance a mortgage, which are more sensitive to short-term changes in interest rates, fell by 4.1%. In the meantime, applications for a mortgage to buy a home inched down by 0.6%.

The volume of mortgage applications in the US were unchanged from the previous week in the last full week of June, according to data compiled by the Mortgage Bankers Association. The stability was aligned with the lack of large changes in mortgage rates in the period, with that on the benchmark fixed 30-year contract easing 2bps to 6.57%. Mortgage rates held despite the pullback in long-term Treasury yields due to retreating energy prices, although hawkish projections from FOMC members tempered any influx into the credit market. Contracts to refinance a mortgage, which are sensitive to short-term changes in interest rates, eased by 0.6%. Meanwhile, applications for a mortgage to buy a home were 0.5% higher.

Mortgage applications in the US inched higher by 1% in the third week of June following the 3.8% drop in the previous period, according to data compiled by the Mortgage Bankers Association. The slight uptick was aligned with a 1bps drop in the benchmark 30-year mortgage rate. The drop in oil prices on de-escalation between Iran and the US brought relief from a pro-inflationary outlook in the economy, but the outlook of a hawkish Federal Reserve following the last FOMC meeting prevented significant respite for long-term Treasury bonds. Applications to refinance an existing mortgage, which are more sensitive to short-term changes in interest rates, rose by 3%. Meanwhile, applications for a mortgage to purchase a home eased by less than 1%.