US weekly mortgage applications inch higher

US mortgage applications edged higher in the week ended 20 February, according to the Mortgage Bankers Association, extending the modest improvement seen a week earlier despite a further drop in benchmark borrowing costs.

Mortgage applications rose 0.4% week-on-week, following a 2.8% increase in the previous period, with the MBA highlighting that the only modest increase came despite mortgage rates falling to their lowest level in nearly four years, driven by soft risk appetite that pushed investors into long‑dated Treasuries.

Refinancing activity, which is more sensitive to short‑term rate moves, climbed 4%, while applications to purchase a home fell 5%, with the report pointing out that a lack of new supply that continued to keep prospective buyers on the sidelines.

Reporting by Iain Gilbert at Sharecast.com