The US Parties Lead the Country to a Default
When will the US go bankrupt? Will it start the market crash unseen before? We have plenty to share with you, so let’s get started.
Soaring interest rates knock American mortgage activity
The previous week American customers filed the lowest number of requests for a mortgage since late 2014 due to the fact that the vast majority of home borrowing costs hit their highest value for more than seven years. That’s what the Mortgage Bankers Association uncovered on Wednesday.
As a matter of fact, loan applications for home refinancing headed south to their lowest value since late 2000. At the same time, mortgage requests to purchase a home slipped to their lowest value for 20 months, as MBA data revealed.
The seasonally adjusted index on mortgage applications inched down by 7.1% hitting 322.1 by October 12. It happened to be the lowest outcome since 296.9 recorded on December 26, 2014. What’s more, it appeared to be the steepest weekly slump for 13 months.
The ascend in mortgage rates turns out to be another headwind for the housing sector, which is currently struggling with poor inventory as well as soaring building costs.
Home borrowing costs tacked on, influenced by a shocking selloff in the American bond market, which in turn pushed the yield on benchmark 10-year Treasury notes to up to 3.261% that appeared to be its highest outcome for 7-1/2 years.
Market participants had dumped bonds due to fears about soaring inflation as well as a faster tempo of rate lifts from the Fed justified by firm economic data.
Bond gains have rebounded on safe-haven demand for bonds backed by steep losses in global stock markets. On Wednesday, the 10-year gain accounted for 3.15%.
In addition to this, interest rates on 15-year fixed-rate as well as five-year adjustable-rate mortgages amounted to respectively 4.50% and 4.34%, thus demonstrating their highest outcomes for more than seven years.
Additionally, the average rate on jumbo mortgages slumped to 4.98%.
Similar
The Sentiment is Bearish for the EUR
The US Consumer sentiment will shake the market today. We are back with more news for you to enjoy!
CPI Wednesday: the Doomsday for EURUSD and GBPUSD?
Today, the US Inflation release at 15:30 GMT+3 will determine the further destiny of the major pairs and gold. The event is highly impactful, as the Federal Reserve will make decisions regarding further rate hikes based on it. Also, we brought you some news about XAUUSD and GBPUSD. Stay tuned!
Latest news
Gold Rises as Central Banks Buy More
About 24% of global central banks intend to increase gold reserves in 2023. Rising inflation, geopolitical turmoil, and worries about interest rates are reasons to increase gold reserves.
US Evades Default This Time
Greetings to a brand new week full of events, economic releases and US debt frictions. We are here to tell you everything you need to know!
USD Gains Momentum
The US dollar index breaks one resistance after another. Read the report to learn the next target for the US dollar index!
