FX.co ★ US Mortgage Applications Surge for 2nd Week

In the week concluding on January 16th, US mortgage applications experienced a notable increase of 14.1% from the previous week. This growth follows a significant 28.5% rise in the previous period, as reported by the Mortgage Bankers Association. The consecutive upsurges align with declining mortgage rates; the interest rate for a standard 30-year mortgage reached a 16-month low of 6.16%. This trend persisted despite some resistance in long-term Treasury yields, following US President Trump's announcement to direct Fannie Mae and Freddie Mac to acquire $200 billion in mortgage-backed securities. Applications for mortgage refinancing, sensitive to immediate interest rate shifts, increased by 20% from the previous week. Additionally, applications for mortgages for purchasing new homes grew by 5%.