“US Inflation Warning: Housing Permits Fall, Mortgage Rates Rise, and Dollar Falls”

Investing.com – US data just released showed a decline to 1.416M, compared to 1.437M expected, while the previous reading was 1.430M but was revised to 1.437M. Permits are down by 1.5% in the month of April.

This data indicates a decline in the permits for houses that were built compared to expectations or the previous reading, which means that housing prices will continue to rise, and this is what appears to have strong effects in the high US inflation data.

At the same time, high mortgage interest rates and an acute shortage of homes for sale affected mortgage demand, which portends a rise in house prices, which will be reflected in the consumer price index.

America’s bankruptcy: debt default and the end of the dollar..what if?

Mortgage applications for a home fell 4.8% last week, compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Where volume was 26% lower than in the same week a year ago.

“Orders fell to the slowest pace in a month, as buyers remain wary of this interest rate volatility, but also as inventory for sale remains scarce in many parts of the country,” Joel Kahn, an economist, wrote in a statement.

The average contract interest rate for 30-year fixed-rate mortgages with matching loan balances (726,200 or less) rose to 6.57% from 6.48%, with points remaining at 0.61 (including origination fees) for loans with a 20% down payment. It is the highest rate in two months. The 30-year constant was 5.49% in the same week a year ago.

Mortgage rates rose last week, even as yields were basically flat, with the spread between the two rates widening to 310 basis points.

Mortgage rates have generally struggled against Treasuries since the Fed ended reinvesting bond portfolio yields in late 2022.

Home loan refinance applications fell 8% during the week, as refinancing is more sensitive to weekly changes in interest rates. Demand fell 43% year-on-year. With rates more than double what they were in the early years of the covid pandemic, there are very few borrowers left who can benefit from refinancing.

And the dollar now

It fell by 0.28% to $1,987 an ounce.

While spot contracts fell by 0.25% to 1984 dollars an ounce.

On the other hand, the dollar index rose by 0.47% to 102.885 points.

If you are a beginner trader, then is the forex market your chance to make huge profits. A giant market between major whales and giant investment banks, so where are the children?

Know where it is heading and its impact on global currencies through this webinar.. To register, click here