01.04.202611:07:12UTC+00US Mortgage Applications Plunge for 3rd Week

Mortgage applications in the US fell 10.4% in the week ending March 27th from the prior week, following a 10.5% decline in the previous period, according to data from the Mortgage Bankers Association. This marked a third consecutive weekly drop of more than 10%, as benchmark mortgage rates jumped 48 basis points from the start of the month.

The increase in borrowing costs reflected a higher inflation outlook, driven in part by the war in the Middle East, which pushed Treasury yields higher across the curve and prompted the FOMC to release more hawkish economic projections. Applications to refinance existing mortgages, which are particularly sensitive to short-term rate moves, plunged 17% in the latest week, bringing their decline for the month to 40%. Meanwhile, applications for loans to purchase homes decreased by 3%.