US mortgage applications fall 10.4pc as mortgage rates surge

(Sharecast News) - US mortgage applications fell 10.4% in the week ended 27 March, according to the Mortgage Bankers Association, extending the prior week's 10.5% decline, with the latest slump coming as benchmark mortgage rates jumped 48 basis points over the course of the month. Applications to refinance a mortgage, which are typically more sensitive to short‑term interest rate moves, tumbled 17% on the week, leaving it down roughly 40% over the month, while applications to purchase a home slipped 3%.

The MBA noted that borrowing costs had risen as a result of the Middle East conflict pushing inflation expectations higher, lifting Treasury yields across the curve and prompting a more hawkish set of economic projections from the Federal Reserve.





Reporting by Iain Gilbert at Sharecast.com