FX.co ★ US Mortgage Applications Surge the Most in 2 Months

In the first week of August, the United States experienced a significant rise in mortgage applications, increasing by 10.9% from the previous week. This follows a previous shift of 3.1%, marking the most considerable climb in mortgage demand observed over the past two months, as reported by the Mortgage Bankers Association. This increase coincided with a 10 basis point decrease in benchmark mortgage rates, reaching their lowest point in four months. This drop in rates was fueled by notable reductions in payroll figures, which resulted in decreased long-term yields on U.S. notes and bonds. Refinancing applications, which are particularly sensitive to short-term interest rate changes, spiked by 23% compared to the prior week, building on a 5.1% increase at the close of July. Conversely, applications for purchasing new homes experienced a more modest rise of 1.4%.