US mortgage applications drop 2.9pc as mortgage rates hit one-year high

(Sharecast News) - US mortgage applications decreased by 2.9% in the week ended 31 July, according to the Mortgage Bankers Associaiton, building on the prior week's 6.4% increase and marking the sharpest back-to-back decline in two months. Last week's drop came as benchmark mortgage rates increased, with the 30-year fixed contract rising to a one-year high of 6.81%, amid concerns that the Federal Reserve may not be able to fight inflation in the near term.

Applications to refinance a mortgage, which are more sensitive to week-to-week interest changes, dropped 2% week-on-week, while applications to purchase a home fell by 4%.







Reporting by Iain Gilbert at Sharecast.com