FX.co ★ US Mortgage Applications Rebound

US mortgage applications increased by 3.6% in the first week of August, the strongest gain in two months and a reversal after two consecutive weekly declines, according to data from the Mortgage Bankers Association. The pickup coincided with a modest pullback in benchmark mortgage rates, reflecting a brief recovery in long-term Treasury bonds from their climb to multi-decade highs. Refinancing applications, which tend to be more sensitive to short-term rate movements, rose 5%, while applications for home purchase mortgages advanced 3%.