FX.co ★ US Mortgage Applications Fall Sharply

Mortgage application volumes in the United States experienced a 5.1% decline for the week ending May 16th, marking the most significant decrease in a month, as reported by the Mortgage Bankers Association. This decrease coincided with a recent rise in benchmark mortgage rates, which inched closer to the 7% mark. This shift was driven by ongoing inflation concerns and the burden of unsustainable debt, which consequently elevated yields on long-term Treasury securities. Applications for new home purchases decreased by 5%, while applications to refinance existing mortgages, which are particularly vulnerable to short-term interest rate fluctuations, also fell by 5%.