Last week was very interesting for the markets, as we saw the releases of the US Inflation and Disney’s earnings report. So let's see what we should await this week!
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.
The United States will publish the Federal Open Market Committee Meeting Minutes on November 24, at 21:00 GMT+2.
Hong Kong’s HK 50 index rose and the Chinese yuan edged up as traders assess the outcome of the first virtual meeting between US President Joe Biden and Chinese leader Xi Jinping.
As Europe moves into recession, next week may provide us with some amazing trading opportunities. Here they are!
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.