FX.co ★ US Mortgage Applications Drop Sharply

In the second week of November, U.S. mortgage application volumes declined by 5.2% from the previous week, effectively offsetting the prior week's 0.6% gain, as reported by the Mortgage Bankers Association. This marks the most significant decrease since late September, aligning with an uptick in benchmark mortgage rates. The increase is linked to persistent inflation concerns and hawkish statements from key Federal Reserve officials, which have dampened expectations for imminent reductions in benchmark short-term rates. Applications for mortgage refinancing, highly sensitive to short-term rate fluctuations, plummeted by 7.3%. Meanwhile, applications for home purchase mortgages fell by 2.3%.