Despite Lower Rates Mortgage Applications Drop in US

August 3, 2016 Share Print 0

A slight drop in interest rates was not enough to rejuvenate the mortgage market, although refinances are still elevated since the Brexit vote caused the initial rate plunge.

Total mortgage application volume fell 3.5 percent last week on a seasonally adjusted basis from the previous week, according to the Mortgage Bankers Association.

Refinance volume, which is highly rate-sensitive, fell 4 percent last week, but it is nearly 56 percent higher than one year ago, when rates were higher. The drop in rates after the Brexit vote brought the total number of borrowers who would benefit from a refinance to 8.7 million, according to Black Knight Financial Services.

via CNBC

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.