US mortgage applications surge 16.8pc

Mortgage applications surged 16.8% in the week ended 9 August, according to the Mortgage Bankers Association, the sharpest week-on-week increase since January 2023.

Applications to refinance a home soared 35%, while applications to purchase a home were up a much more modest 3%.

The increase, which extended the prior week's 6.9% jump, came alongside a sharp pullback in borrow costs, with the rate on benchmark contracts falling almost 30 basis points since the beginning of August amid increasingly dovish expectations for the Federal Reserve.

Reporting by Iain Gilbert at Sharecast.com