US mortgage applications fall by 8.9pc

(Sharecast News) - US mortgage applications fell by 8.9% in the week ended 30 January, according to the Mortgage Bankers Association of America, extending the previous week's 8.5% drop.

Applications fell for a second straight week despite a decline in mortgage rates, with markets continuing to assess how the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation will comply with Donald Trump's order to purchase $200bn in mortgage-backed securities.

Applications to refinance a mortgage, which are more sensitive to short-term changes in interest rate, fell by 5% week-on-week, while applications to purchase a home sunk 14%.





Reporting by Iain Gilbert at Sharecast.com