FX.co ★ US Mortgage Applications Rebound

US mortgage applications increased by 2.8% in the second week of February compared with the previous week, partially offsetting the cumulative 20% decline recorded over the prior three weeks, according to data from the Mortgage Bankers Association. The modest uptick coincided with a 4-basis-point drop in benchmark mortgage rates, which again tested the 16-month low last seen in late January, mirroring the decline in long-term Treasury yields amid expectations of multiple Federal Reserve rate cuts this year. Demand for mortgage refinancing, which is particularly sensitive to short-term rate movements, rose 7%. By contrast, applications for home purchase mortgages fell 3%, with the report highlighting a lack of new supply that kept many potential buyers on the sidelines.