Fed Chair Jerome Powell will testify today at 19:05 MT time. This event is crucial for traders as the tone of the speech may set the risk tone for the markets for the next two weeks.
American mortgage requests head north as loan rates keep to 10-month minimum
American mortgage applications tacked on for the first time for five weeks because most home borrowing costs kept to their lowest value for 10 months. That’s what the Mortgage Bankers Association uncovered on Wednesday.
As the Washington-based industry group informed, its seasonally updated indicator of loan requests to purchase a house and to have one refinanced headed north by 3.6% hitting 365.3 by February 15. The previous week's outcome turned out to be the lowest for a month.
Mortgage rates stood still on mixed economic news because core inflation was still solid, while in Decemberб retail sales were much weaker than anticipated. However, the total application activity surged over the week.
With conforming loan balances of $484,350 or less interest rates on 30-year fixed-rate mortgages headed north to 4.66% from the previous week's outcome of 4.65% that turned out to be the lowest reading since March 2, last year.
Benchmarks for most mortgages, American Treasury gains tacked on the previous week because underlying inflation trends were still intact and investors cut their safe-haven bond savings on upbeat mood that America and China would have their trade conflict resolved.
As some experts told, the vast majority of rates were still close to 10-month minimums that attracted a number of borrowers with an incentive to refinance just to capitalize.
Meanwhile, the group's seasonally updated gauge of home refinancing requests managed to tack on by 6.4% reaching 1,084.4.
As for the refinance share of total mortgage applications, the previous week it accounted for 41.7% in contrast with 41.8% last week.
Additionally, MBA's seasonally updated indicator of applications to purchase a house, traditionally considered to be a proxy on future housing activity, rallied by 1.7% last week hitting 232.7.
Great news for oil bulls! OPEC and its allied producers agreed to expand output cuts for the next month.
The USD skyrocketed after Fed Powell’s speech. OPEC and allied producers agreed to extend production cuts for another month. Oil surged.
The European Central Bank publishes its monetary policy statement that includes an announcement of the interest rate on March 11, at 14:45 MT time.