US mortgage applications sink 10.7% week-on-week

US mortgage applications sank by 10.7% in the week ended 29 December, according to the Mortgage Bankers Association, the fastest weekly decline seen since February and despite lower Treasury yields and mortgage rates,

Applications to refinance a mortgage crashed 18.1%, following a 0.1% drop a month earlier, while applications to purchase a new home slipped 7.6% to fully erase the 2.4% increase seen a week earlier.

Reporting by Iain Gilbert at Sharecast.com