The volume of US mortgage applications declined 2.7% in the week ending July 10, deepening the drop seen the previous week, according to data from the Mortgage Bankers Association. The decrease coincided with a 7-basis-point rise in the benchmark 30-year fixed mortgage rate to 6.65%, matching its highest level in 11 months. The move reflected a sharp increase in yields on longer-term Treasury notes and bonds, driven by mounting concerns over higher energy-related inflation.
Refinancing applications, which are particularly sensitive to short-term interest rate shifts, fell 4%. Meanwhile, applications for mortgages to purchase homes declined by a steeper 7%.
