US mortgage applications increased 3.6% in the first week of August, marking the largest weekly rise in two months after two consecutive declines. The gain came as benchmark mortgage rates saw a modest respite, reflecting a temporary rebound in long-term Treasury bonds after their selloff pushed yields to multi-decade highs. Refinancing applications, which are typically more sensitive to short-term rate changes, rose 5%, while applications to buy a home increased 3%, according to Mortgage Bankers Association data.