Today the Fed will make a policy statement at 21:00 GMT+3. This event will affect all the currency pairs with the USD and thus almost the all Forex market!
American mortgage applications report the greatest dive in four months
American mortgage applications to purchase a home and to have it refinanced demonstrated their steepest weekly slump for four months due to the fact some mortgage rates jumped to one-month maximums, in step with higher bond gains. That’s what the Mortgage Bankers Association revealed on Wednesday.
As the Washington-based industry group revealed, its seasonally updated index on home loan requests to lenders inched down by about 7.3% hitting 425.6 by April 19. Eventually, the given sink turned out to be the most impressive slump since a 9.9% dive in the week of Dec. 21.
The firm economy as well as job market are backing buyer interest, although soaring mortgage rates could impact the budgets of some would-be buyers, as some analysts pointed out.
With loan balances of $484,350 or less, interest rates on conforming 30-year mortgages amounted to 4.46% the previous week, thus marking a one-month maximum and soaring from the previous week’s outcome of 4.44%.
As for other mortgage rates, tracked by MBA, they headed north 2-6 basis points.
Mortgage rates went up in tandem with Treasury gains the previous week because traders scaled back their safe-haven bond holdings in the face of encouraging economic data in America and China.
Borrowers are still very sensitive to rate changes. That’s why there has been a 28% decline in refinance applications for three weeks. Purchase activity dived too, although staying nearly 3% higher than in 2018.
Besides this, MBA's seasonally updated indicator on refinancing applications headed south by 11.0% reaching 1,293 the previous week. Four weeks ago, it soared to 1,786, which appears to be its strongest result since November 2016.
The NZD rocketed after the Reserve Bank of New Zealand claimed it would end quantitative easing this month. Jump in to know more!
The United States will publish a headline and core inflation rate on July 13, at 15:30 MT time.
The Reserve Bank of Australia (RBA) will hold a meeting and announce changes to the monetary policy on August 3, at 07:30 MT time (GMT+3).
What events to follow and how to trade during the week of July 2-6?
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up.