FX.co ★ US Mortgage Applications Inch Higher

US mortgage applications edged up 1% in the third week of June, partially reversing the prior week’s 3.8% decline, according to data from the Mortgage Bankers Association. The modest rise coincided with a 1 basis point decrease in the benchmark 30-year mortgage rate. A decline in oil prices, driven by easing tensions between Iran and the US, tempered some of the pro-inflationary pressures in the economy. However, expectations of a still-hawkish Federal Reserve following the latest FOMC meeting limited any meaningful rally in long-term Treasury yields. Refinancing applications, which tend to react more quickly to short-term rate movements, increased 3%, while applications for home purchase loans slipped by less than 1%.