FX.co ★ US Mortgage Applications Slump the Most YTD

Mortgage application volumes in the United States fell by 8.5% from the previous week during the second week of April, marking the most significant decrease since the beginning of the year. This downturn offset a 20% increase recorded in the prior week, as reported by data from the Mortgage Bankers Association. The decline aligns with rising benchmark mortgage rates, following the US's decision to escalate tariffs on major trading partners. This move triggered a selloff in long-dated Treasury securities and asset-backed securities. Applications for home refinancing, which are particularly sensitive to short-term interest rate changes, dropped by 12% over the week. Meanwhile, despite indications of increased housing inventory, applications for new home purchase mortgages decreased by 5%.