FX.co ★ US Mortgage Applications Hold Recent Surge

The Mortgage Bankers Association has reported a 0.6% increase in mortgage applications in the United States for the week ending September 19th, maintaining the near 30% surge observed in the previous period, which was the second-highest weekly figure since the decline in interest rates in March 2020. This trend aligns with another reduction in benchmark mortgage rates, now at their lowest in a year. The decrease in rates is attributed to disheartening labor market data, which caused yields on long-term Treasury securities to fall. Refinancing applications, typically more responsive to short-term interest rate changes, rose by 1% following an impressive 60% rise the prior week. Conversely, applications for mortgages to purchase new homes remained steady.