1. Federal Reserve cut interest rates, causing mortgage rates to rise again. 2. Mortgage application volume fell 3.8% last week, impacting homebuyer sentiment. 3. Refinance activity remains stable with 59% share, highest since September. 4. Investors anticipate inflation data, influencing Fed's future rate actions. 5. 12-month refinance applications surged 86%, reflecting borrowers' favorable conditions.
FAQ
Why Bearish?
Higher mortgage rates dampen consumer spending, historically linked to S&P declines.
How important is it?
Rising mortgage rates typically correlate with reduced spending, which could negatively impact S&P 500 companies.
Why Short Term?
Immediate effects on mortgage demand will influence S&P in coming weeks.