The volume of mortgage applications in the US fell by 10% from the previous week in the second period of July 2025, fully erasing the 9.4% increase from the previous week, according to data compiled by the Mortgage bankers' Association. It was the sharpest decline in nearly three months, pressured by a 5bps increase in benchmark mortgage rates, and magnified by increasing economic uncertainty that make households hesitant to commit to large contracts. Applications for a contract to refinance an existing mortgage, which are more sensitive to short-term changes in interest rates, sank by 12%. In turn, application volumes for a mortgage to purchase a home fell by 7%.