The volume of mortgage applications in the US fell by 2.7% from the previous week on the period to July 10th, extending the decline from the earlier week, according to data compiled by the Mortgage Bankers Association.
The drop was aligned with the 7bps increase in benchmark 30-year fixed mortgage rates to 6.65%, tying for the highest in 11 months, as concerns of higher energy inflation drove yields on longer-term Treasury notes and bonds to rise sharply in the period.
Applications for a contract to refinance a mortgage, which are sensible to short-term changes in interest rates, fell by 4%.
Meanwhile, applications for a mortgage to purchase a home dropped by a sharper 7%.