US mortgage applications edged down 0.3% in the first week of February from the prior week, leaving intact the cumulative 16.7% decline recorded over the previous two weeks, according to data from the Mortgage Bankers Association. This slight pullback persisted despite a continued easing in mortgage rates at the turn of the month, as markets weighed how Freddie Mac and Fannie Mae would implement President Trump’s directive to purchase $200 billion in mortgage-backed securities.
Applications for loans to purchase new homes fell 2.4%, extending the impact of the prior week’s 14% slump, when severe winter storms across the country kept many potential buyers housebound. By contrast, applications to refinance existing mortgages—typically more responsive to short-term interest rate movements—rose 1.1%.
