Fed day data: Interest rates and demand
SPY•US mortgage applications rose 3.4% last week as the average 30-year fixed rate fell 4 basis points to 7.37%. The goods trade deficit widened 2.1% to $134.9 billion in September, while wholesale inventories rose 0.6%.
1. Mortgage demand rebounds
US mortgage applications rose 3.4% last week as the average 30-year fixed contract rate fell 4 basis points to 7.37%, according to the Mortgage Bankers Association. Purchase applications increased 3.8% and refinancing applications rose 2.7%; over the past year, purchase applications fell 21.4% and refinancing demand dropped 62.1%.
2. Trade deficit widens
The US goods trade deficit unexpectedly widened 2.1% to $134.9 billion in September, $4.7 billion more than analysts expected. Exports rose 2.8% and imports increased 2.4%. Wholesale inventories climbed 0.6%, following a 0.5% increase in August.
3. Housing stocks lag
The S&P 1500 Homebuilding Index and PHLX Housing Sector Index are down 5.4% and 7.3%, respectively, this year, compared with a 12.8% gain for the S&P 500. The article said the housing indexes' earlier outperformance gave way in March as the Iran war pushed interest rates and mortgage rates higher.
