US Mortgage Applications Slide 11% After Federal Reserve Raised Rates 50bps

The Mortgage Bankers Association showed mortgage applications in the US fell -11.0% after rising +2.0% last week. The Federal Reserve raised rates 50bps that week. The 30-year mortgage rate has been rising with yields with higher house prices in general. The purchase index slumped to its weakest level since May 2020 and the refinancing index to its lowest since January 2019.  Mortgage Bankers Association for the week ending 13 May 2022 US MBA mortgage applications w.e. 13 May -11.0% vs … Continue reading “US Mortgage Applications Slide 11% After Federal Reserve Raised Rates 50bps”

Dutch Central Bank Chief First ECB Governor To Raise Prospect of 50Bps Rate Rise

A top European Central Bank official has raised the prospect of a half percentage point rate increase in July. Dutch central bank chief Klaas Knot said if inflation continues to climb then rates may need to be raised. This was the first time such an aggressive shift has been suggested. The ECB left rates unchanged as expected in April. The bank left deposit facility interest rates at -.50%. Highlights Dutch central bank chief Klaas Knot is one of the more … Continue reading “Dutch Central Bank Chief First ECB Governor To Raise Prospect of 50Bps Rate Rise”

Banco de México Raises Rates Again with Inflation Risk to Mexican Economy

The Mexican Central Bank, Banco de México raised interest rates by 50 basis points to 7.00% with the bank saying headline and core inflation forecasts were revised upwards. One dissenter voted to hike by 75 bps. The Mexico central bank Governing Board increased the target for the overnight interbank interest rate by 50 basis points to 7.00%. The vote was not unanimous. Voting in favor of the decision were Victoria Rodríguez, Galia Borja, Gerardo Esquivel, and Jonathan Heath. Voting in … Continue reading “Banco de México Raises Rates Again with Inflation Risk to Mexican Economy”

Bank of England Raises Interest Rates Fourth Time to 1.00% and Forecast 10% Inflation and Recession Early in 2023

The Bank of England MPC at its May meeting raised the bank rate by 25 bps from 0.75% to 1.00%, as expected. The vote was 6-3 vs 8-1 expected (Haskel, Mann, Saunders voted to raise bank rate 50 bps to 1.25%). The BoE said some further modest tightening may be appropriate in the coming months. The move followed a day after the Federal Reserve raised rates by a half of a percent at their May meeting. Inflation is at the … Continue reading “Bank of England Raises Interest Rates Fourth Time to 1.00% and Forecast 10% Inflation and Recession Early in 2023”

US Mortgage Applications Rise First Time in Two Months Ahead of Federal Reserve Expected to Raise Rates 50bps

The Mortgage Bankers Association showed mortgage applications in the US rose for the first time in 8 weeks. The 30-year mortgage rate has been moderating as yields stall somewhat ahead of the FOMC with higher house prices in general. The Federal Reserve is expected to rewind to May 2000 today, when “inflationary imbalances,” saw the Fed led by Alan Greenspan raise interest e rates by 0.50% to a target of 6.5%. That was the last time the Fed would ever … Continue reading “US Mortgage Applications Rise First Time in Two Months Ahead of Federal Reserve Expected to Raise Rates 50bps”

US Mortgage Applications Fall for Sixth Straight Week as Mortgage Rates Surge to Highest Since 2010

The Mortgage Bankers Association showed mortgage applications in the US fell for the 6th straight week. Down 5% in the previous week as mortgage rates continue to lurch higher. The refinancing index sank 7.7% and the purchase index 3%. The average contract rate on a 30-year fixed-rate mortgage increased to 5.2%, the highest since 2010, from 5.13%. This year’s surge in mortgage rates was hardly unforeseen, given the record lows reached in the pandemic period and concerns about high U.S. … Continue reading “US Mortgage Applications Fall for Sixth Straight Week as Mortgage Rates Surge to Highest Since 2010”

ECB Leaves Rates Unchanged as Expected, Stresses on Flexibility in Making Future Decisions

ECB left rates unchanged as expected in April. The bank left deposit facility interest rates at -.50% and held steady rates on the main refinancing operations and on the marginal lending facility unchanged. ECB reaffirmed commitment to end bond purchases in Q3 this year. Stresses on flexibility when it comes to making any future decisions. ECB Monetary Policy Decision 14 April 2022 Deposit facility rate -0.50% Main refinancing rate 0.00% Marginal lending facility 0.25% Highlights Reaffirms that APP purchases will … Continue reading “ECB Leaves Rates Unchanged as Expected, Stresses on Flexibility in Making Future Decisions”

Bank of England Raises Interest Rates Third Time to 0.75% With Inflation the Priority

The Bank of England MPC at its March meeting voted 8-1 Cunliffe dissented in favor of maintaining bank rate at 0.50%) to raise the Bank Rate from 0.50% to 0.75%. The BoE said some further modest tightening may be appropriate in the coming months. The move followed a day after the Federal Reserve Raised Rates for the first time since 2018. Inflation is at the highest rate for a decade, the sharpest annual incline for 10 years and well above … Continue reading “Bank of England Raises Interest Rates Third Time to 0.75% With Inflation the Priority”

ECB Leaves Rates Unchanged as Expected, Commitment to End Bond Purchases in Q3 2022

ECB left rates unchanged as expected in March. The bank left deposit facility interest rates at -.50% and held steady rates on the main refinancing operations and on the marginal lending facility unchanged. ECB added a commitment to end bond purchases in Q3 this year. ECB governing council expects net purchases to end shortly before it starts raising rates ECB Monetary Policy Decision 10 March 2022 Deposit facility rate -0.50% Main refinancing rate 0.00% Marginal lending facility 0.25% Highlights ECB … Continue reading “ECB Leaves Rates Unchanged as Expected, Commitment to End Bond Purchases in Q3 2022”

Banco de México Raises Rates Again as Inflationary Pressures Greater and Lasted Longer Than Anticipated

The Mexican Central Bank, Banco de México raised interest rates by 50 basis points to 6.00% with the bank saying Inflationary pressures have been greater and have lasted longer than anticipated. Banco Central do Brasil​ again aggressively hiked its benchmark interest rate by 1.5% to 10.75% last week. The Mexico central bank Governing Board increased the target for the overnight interbank interest rate by 50 basis points to 6.00%. The vote was not unanimous, Voting in favor of the decision … Continue reading “Banco de México Raises Rates Again as Inflationary Pressures Greater and Lasted Longer Than Anticipated”