US mortgage market worsens

Mortgage applications in the U.S. plummeted by 6.7% in the third week of October, marking the fourth consecutive week of decline and compounding a 17% drop from previous periods.

US mortgage market worsens This sharp decrease is closely tied to the significant rise in benchmark interest rates observed since the beginning of the month. Strong economic data has led markets to anticipate a more aggressive stance from the Federal Reserve in the coming year, pushing up yields on long-dated Treasury bonds.

Refinance applications also fall

Refinance applications, which are particularly sensitive to short-term interest rate fluctuations, fell by 8.5% compared to the previous week, continuing a steep decline of 26% from earlier figures. Meanwhile, applications for new home purchases also decreased by more than 5%. This trend reflects the ongoing impact of rising borrowing costs on the housing market, according to the Mortgage Bankers Association of America.