23.09.202611:30:10UTC+00US Mortgage Applications Fall for 3rd Week

The volume of US mortgage applications declined by 1.5% in the third week of September, following a 4.1% drop in the previous week and marking a third consecutive decrease, according to data from the Mortgage Bankers Association. The downturn coincided with a sharp rise in mortgage rates, with the average rate on the benchmark 30-year fixed mortgage climbing to 7.12%, its highest level in two years. As a result, nearly 10% of applications shifted to riskier adjustable-rate mortgages. Refinance applications, which tend to be more sensitive to short-term interest rate movements, fell by 3%. At the same time, yields on longer-dated US Treasuries surged around the turn of the month, as higher energy prices, increased debt issuance, and widening fiscal deficits reduced investor appetite for duration in fixed income markets. Mortgage applications for home purchases edged down by 1%.