US mortgage applications register steepest decline in nearly two months

US mortgage applications fell 3.9% in the fourth week of July, according to the Mortgage Bankers Association, extending the prior week's 2.2% drop to record the steepest weekly decline in almost two months.

The fall comes even as benchmark mortgage rates remained at their February lows of 6.82%, in line with a pullback in long-dated Treasury yields throughout the month as market participants continue to bet on the Federal Reserve delivering multiple rate cuts before the end of 2024.

Applications to purchase a home fell by 1.5% for a third weekly decline in a row, while those to refinance a mortgage tanked by 7.2% week-on-week.

Reporting by Iain Gilbert at Sharecast.com