FX.co ★ US Mortgage Applications Inch Higher

The volume of US mortgage applications edged up 0.4% from the previous week in the third week of February, following a 2.8% increase in the prior period, according to data from the Mortgage Bankers Association. The gain was modest despite a sharp decline in benchmark mortgage rates, which fell to their lowest level in nearly four years as weak risk appetite prompted investors to move into long-dated Treasuries. Demand for mortgage refinancing contracts, which are more sensitive to short-term interest rate movements, rose 4%. Meanwhile, applications for home purchase mortgages fell 5%, with the report pointing to limited new supply that kept many potential buyers on the sidelines.