US MBA mortgage applications w.e. 24 June +0.7% vs +4.2% prior 0 (0)

  • Prior +4.2%
  • Market index 322.7 vs 320.4
  • Purchase index 243.1 vs 242.8
  • Refinancing index 726.1 vs 712.7
  • 30-year mortgage rate 5.84% vs 5.98% prior

A slight rise in mortgage activity was seen last week after what I would say was a bit of a rush in home buying before the Fed raised rates again. The average rate of the most popular mortgage tenor did drop by 14 bps to 5.84%, but it still isn’t of much comfort to prospective home owners I would say after having seen a 33 bps rise in the week prior.

US dollar

This article was written by Justin Low at www.forexlive.com.

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Fed’s Mester: Have to act more forcefully if inflation expectations become unanchored 0 (0)

  • Central banks need to be resolute in acting to bring inflation down
  • Policymakers cannot be complacent about a rise in longer-term inflation expectations
  • Current inflation situation is a very challenging one
  • Our policy communications are important for keeping inflation well anchored

Nothing new really by Mester. As mentioned earlier, markets have already more or less priced in a 75 bps rate hike next month and it’s tough to see the Fed go beyond that.

This article was written by Justin Low at www.forexlive.com.

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