FX.co ★ US Mortgage Applications Fall the Most in 6 Months

Mortgage application volumes in the United States experienced a significant drop of 12.7% for the week ending April 18th, marking the steepest decline since October of the previous year. This continues the downward trend, building on the 8.5% decrease observed the prior week, as reported by the Mortgage Bankers Association. The downturn aligns with an increase in benchmark mortgage rates, which escalated following the US's decision to elevate tariffs against key international trading partners. This move provoked a selloff in long-term Treasury securities and asset-backed securities. Specifically, refinance applications, which react more acutely to short-term interest rate fluctuations, plummeted by 20% within the week. Similarly, applications for mortgages to purchase new homes dropped by 7%, despite indications of increased housing inventory.