US mortgage applications fall 1.5pc as fixed rates climb above 7pc.
US mortgage applications fell 1,5% in the week ended 18 September, according to the Mortgage Bankers Association, extending the 4.1% drop seen in the prior week and marking a third straight weekly decline.
Source: Sharecast
Applications to refinance a mortgage slid 3% to its slowest pace in 18 months, while applications to purchase a home edged 1% lower, reflecting softer demand against a backdrop of rising borrowing costs and uncertainty over future property disposals.
The fall comes as the 30‑year fixed mortgage rate increased to 7.12%, up from 6.97% a week earlier, and rates for 30-year mortgages with jumbo loan balances increased 12 basis points to 7.15%.
"Mortgage rates vaulted higher last week, with the 30-year fixed rate at 7.12% - the highest level since May 2024. With fixed rates much higher, more borrowers opted for ARMs, with the ARM share reaching 9.8%, as rates for 5/1 ARMs were more than a percentage point lower than those for fixed rate loans," said MBA chief economist Mike Fratantoni.
Reporting by Iain Gilbert at Sharecast.com
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