FX.co ★ US Mortgage Applications Fall to 3-Month Low

The Mortgage Bankers Association reported that, as of the week ending May 23rd, the volume of mortgage applications in the United States decreased by 1.2% compared to the previous week, resulting in the lowest level in three months, following a prior decline of 5.1%. This consecutive drop coincides with an upward trend in benchmark mortgage rates, with the 30-year fixed rate approaching the 7% mark. This increase in rates reflects heightened fiscal concerns related to the US budget, leading to a significant rise in long-term yields. Notably, refinancing applications, which are more vulnerable to short-term interest rate fluctuations, declined by 7.1%. Conversely, applications for mortgages intended to purchase new homes experienced a growth of 2.7%.