US mortgage applications slip 0.5pc as rates edge higher

(Sharecast News) - US mortgage applications eased 0.5% in the week ended 22 August, according to the Mortgage Bankers Association, extending the prior week's 1.4% decline and partially unwinding the 14% surge seen across the first half of August. Last week's modest pullback coincided with a one basis point increase in the benchmark 30-year mortgage rate, as long-dated Treasury yields held firm following pro-inflationary signals in recent leading indicators.

Applications to refinance a mortgage, which are more sensitive to short-term interest rates, led the decline, dropping 3.5% week-on-week, offsetting a 2.2% increase in applications to purchase a home.

The MBA also noted that while purchase demand remained resilient, refinancing volumes continue to lag amid limited incentive to reprice existing debt.













Reporting by Iain Gilbert at Sharecast.com