US mortgage applications surge as Treasury yields fall

US mortgage applications soared 15.6% in the week ended 7 June, according to the Mortgage Bankers Association of America, rebounding from a 5.2% drop in the previous week and erasing the prior two week’s declines.

The increase came as average mortgage rates fell five basis points amid a drop in Treasury yields throughout the period.

Applications to refinance a home surged 28%, while the to purchase a home increased 12%.

Reporting by Iain Gilbert at Sharecast.com