FX.co ★ US Mortgage Applications Edge Lower

Mortgage applications in the US declined by 1.6% in the week ending April 24th, partially reversing the previous period’s 7.9% surge, according to data from the Mortgage Bankers Association (MBA). The modest pullback coincided with a 2 basis point increase in the MBA’s benchmark mortgage rate, reflecting a rise in long-term Treasury yields as upside inflation risks from higher energy costs curtailed expectations for interest rate cuts by the Federal Reserve. Applications to refinance existing mortgages, which are typically more sensitive to short-term rate movements, fell by 4.4%. By contrast, applications for loans to purchase new homes edged up by 1.1%.