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

The volume of mortgage applications in the United States experienced a 1.4% decline in the final week of November compared to the previous week, reaching its lowest level in nearly three months, as reported by the Mortgage Bankers Association. This decrease occurred even with an 8 basis point drop in benchmark mortgage rates. Market participants increased their expectations of an imminent interest rate cut by the Federal Reserve, spurred by dovish statements from key FOMC members. Notably, applications for refinancing existing mortgages, which are typically sensitive to short-term rate fluctuations, fell by 4.4% from the prior week. Conversely, applications for mortgages to purchase new homes increased by 2.5%.