FX.co ★ US Mortgage Applications Extend Decline

In the final week of January, mortgage applications in the United States declined by 8.9% compared to the previous week, furthering the 8.5% decline seen in the prior period. This reduction has offset part of the impressive 47% increase observed since the beginning of the year, as reported by the Mortgage Bankers Association. Despite the decrease in mortgage rates, application numbers have dropped for the second consecutive week. Concurrently, there is an ongoing review of how Freddie Mac and Fannie Mae will adhere to President Trump's directive to purchase $200 billion in mortgage-backed securities. Notably, applications for mortgages to purchase new homes plummeted by 14%, while applications for refinancing—typically more responsive to short-term interest rate fluctuations—experienced a more moderate decrease of 5% from the previous week.