美国抵押贷款银行家协会(MBA)周三公布的数据显示：The mortgage loan interest rate continues to decline, further boosting confidence in the US real estate market. Last week, the refinancing mortgage application index hit a new high of over two years, and construction permits in August rose to the highest level in six months.
The countdown to the highly anticipated Federal Reserve interest rate decision has begun, and every piece of data released tonight is 'playing' on the tightly stretched market nerves.
First, the mortgage rates in the United States fell to the lowest level since September 2022 last week, stimulating a large number of home purchase and refinancing mortgage applications.
Data released by the Mortgage Bankers Association (MBA) in the United States on Wednesday:
As of the week ending September 13, the contract rate for 30-year fixed-rate mortgages dropped by 14 basis points to 6.15%, marking the seventh consecutive weekly decline, the longest since 2018-2019.
The average contract rate for 15-year mortgages fell by 29 basis points to 5.42%, also the lowest level in two years. The rate for adjustable-rate mortgages dropped to 5.66%.
The continued decline in mortgage rates helps further boost confidence in the US real estate market.
The MBA's home purchase mortgage application index rose by 5.4% last week, reaching a three-month high; the refinancing mortgage application index soared by over 24%, reaching the highest level since April 2022.
And tonight, the latest data from the U.S. Census Bureau shows:
In August, new home construction in the USA rose to 1.356 million households, reaching the highest level since April; building permits increased to 1.475 million households, the highest level in six months.
In addition, earlier data released showed that in September, the U.S. residential construction confidence index rose for the first time in six months, with confidence improving in all regions.
Mortgage rates have followed changes in U.S. bond yields, lingering near the lowest levels since mid-2023, as the market generally expects the Federal Reserve to start a series of rate cuts.
Wall Street expects the Federal Reserve to begin the highly anticipated rate-cut cycle tonight, but there is a huge disagreement on whether the cut will be 25 basis points or 50 basis points.
However, as previously stated by The Wall Street Journal, whether it's 25 or 50 basis points, the market is likely to experience severe volatility. The market is heavily betting on 50 basis points, and if the Fed cuts 25 basis points, the market will face huge losses; but if it cuts 50 basis points and subsequent actions lag behind market expectations, it may trigger panic and result in a renewed tightening of financial conditions.
Editor/Lambor
