Mortgage rates dip further; some borrowers bite
Major U.S. stock indexes red; Nasdaq down most
Energy biggest loser among S&P sectors; healthcare leads gainers
STOXX 600 up ~0.4%
Dollar up; gold, crude slide; bitcoin down >3%
10-year U.S. Treasury yield steady ~3.83%
Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com.
MORTGAGE RATES DIP FURTHER; SOME BORROWERS BITE
The cost of financing home loans stayed on a meandering journey downward last week, getting the attention of a smattering of would-be buyers, according to the Mortgage Bankers Association (MBA).
The average 30-year fixed contract rate USMG=ECI shed 6 basis points to 6.44%, the lowest since April 2003.
As a result, applications for loans to buy homes USMGPI=ECI increased by about 1.0%, which offset a nominal 0.1% decline in refi demand USMGR=ECI.
High mortgage rates have resulted in a double-whammy of sorts for the housing market; first, they made monthly payments less affordable.
Second, they have dissuaded homeowners, many of whom had locked in much lower rates, from entering the market.
This has resulted in a supply drought, which pushed home prices upward and further strained affordability.
But Federal Reserve Chair Jerome Powell has at last announced that "the time has come" to cut interest rates, and that could be causing some hesitancy as would-be borrowers await further declines in borrowing costs.
"As observed in recent weeks, despite lower rates, purchase applications have not moved much," writes Joel Kan, MBA’s deputy chief economist. "Prospective homebuyers are staying patient now that rates are moving lower and for-sale inventory has started to increase."
The 30-year fixed rate is now 87 basis points below where it was during the same week last year. While refi demand has jumped 85.2% over that time period, purchase applications are down 9.0%.
But while applications for loans to buy homes is considered among the most leading housing indicators, it can't hold a candle to the stock market, which tends to reflect where investors expect the sector to be six to 12 months down the road.
With that in mind, over the last year, the S&P 1500 Homebuilding index .SPCOMHOME and the Philadelphia SE Housing index .HGX have risen by 58.9% and 45.6%, respectively.
Compare that with the broader S&P 500's still-impressive 26.9% advance over the same time period:
(Stephen Culp)
*****
FOR WEDNESDAY'S EARLIER LIVE MARKETS POSTS
INVESTORS STAND PAT ON NVIDIA DAY CLICK HERE
BUYING OPPORTUNITIES IN EUROPEAN BANK SHARES CLICK HERE
CONSENSUS IS FOR GOOD Q3 EUROPEAN EARNINGS BUT BAD Q4 CLICK HERE
DOLLAR CLOSE TO FAIR VALUE FOR THE FIRST TIME SINCE MARCH 2024 - BOFA CLICK HERE
INSURERS IN FOCUS CLICK HERE
NUDGING UP BEFORE THE BIG RESULTS CLICK HERE
MARKET HELD IN THRALL AHEAD OF NVIDIA NUMBERSCLICK HERE
Mortgage demand https://reut.rs/3yY9SoE
Housing stocks https://reut.rs/3T9tsVD
Activos relacionados
Últimas noticias
Descargo de responsabilidades: Cada una de las entidades de XM Group proporciona un servicio de solo ejecución y acceso a nuestra plataforma de trading online, permitiendo a una persona ver o usar el contenido disponible en o a través del sitio web, sin intención de cambiarlo ni ampliarlo. Dicho acceso y uso están sujetos en todo momento a: (i) Términos y Condiciones; (ii) Advertencias de riesgo; y (iii) Descargo completo de responsabilidades. Por lo tanto, dicho contenido se proporciona exclusivamente como información general. En particular, por favor tenga en cuenta que, los contenidos de nuestra plataforma de trading online no son ni solicitud ni una oferta para entrar a realizar transacciones en los mercados financieros. Operar en cualquier mercado financiero implica un nivel de riesgo significativo para su capital.
Todo el material publicado en nuestra plataforma de trading online tiene únicamente fines educativos/informativos y no contiene –y no debe considerarse que contenga– asesoramiento ni recomendaciones financieras, tributarias o de inversión, ni un registro de nuestros precios de trading, ni una oferta ni solicitud de transacción con instrumentos financieros ni promociones financieras no solicitadas.
Cualquier contenido de terceros, así como el contenido preparado por XM, como por ejemplo opiniones, noticias, investigaciones, análisis, precios, otras informaciones o enlaces a sitios de terceros que figuran en este sitio web se proporcionan “tal cual”, como comentarios generales del mercado y no constituyen un asesoramiento en materia de inversión. En la medida en que cualquier contenido se interprete como investigación de inversión, usted debe tener en cuenta y aceptar que dicho contenido no fue concebido ni elaborado de acuerdo con los requisitos legales diseñados para promover la independencia en materia de investigación de inversiones y, por tanto, se considera como una comunicación comercial en virtud de las leyes y regulaciones pertinentes. Por favor, asegúrese de haber leído y comprendido nuestro Aviso sobre investigación de inversión no independiente y advertencia de riesgo en relación con la información anterior, al que se puede acceder aquí.
