FX.co ★ US Mortgage Applications Plunge

In the week ending September 26th, the volume of mortgage applications in the U.S. dropped by 12.7% compared to the previous week, marking one of the sharpest declines witnessed in the past year. This decrease comes after a substantial 42% increase in mortgage applications over the preceding three weeks, driven by a rebound in benchmark mortgage rates from a one-year low. This rebound was influenced by rising yields on long-term Treasury securities, which emerged from diminishing concerns about a weak labor market and an uptick in consumer spending data. Refinancing applications, which are more sensitive to immediate rate changes, fell sharply by 21% from the previous week. Meanwhile, applications for new home purchase mortgages decreased slightly, dipping by 1%.