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25.03.202611:17:12UTC+00US Mortgage Applications Slump for 2nd Week

Mortgage applications fell 10.5% in the week ending March 20, following a 10.9% decline the previous week, according to data from the Mortgage Bankers Association. The downturn coincided with a rise in benchmark mortgage rates, with the average rate on a 30-year fixed mortgage climbing to a five-month high of 6.43%.

The increase in borrowing costs reflected a surge in long-dated Treasury yields after the outbreak of war in the Persian Gulf disrupted energy exports and prompted Federal Reserve policymakers to scale back their projections for interest rate cuts this year. Applications to refinance existing mortgages—typically more sensitive to short-term rate movements—dropped 15%, while applications to purchase a home declined 5%.

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