Prior +0.5%
- Market index 783.8 vs 794.5 prior
- Purchase index 289.0 vs 269.7 prior
- Refinancing index 3,658.8 vs 3,850.4 prior
- 30-year mortgage rate 3.26% vs 3.23%
The drop in mortgage activity in the past week owes much to a decline in refinancing activity as purchases actually picked up, despite the 3 bps increase in the long-term rate to its highest level since July last year.
Once again, amid the recent surge higher in yields/rates, it could dampen mortgage activity after the more robust recovery seen during the immediate period of the pandemic.
Further Development
Analyzing the current trading chart of EUR/USD, I found that there is test of the important resistance pivot level at 1,1900, which is sign that there is potential for the downside rotation.
My advice is to watch for selling opportunities on the rallies with the downside targets at 1,1870 and 1,1840.
Stochastic oscillator is in overbought zone, which is another confirmation for further downside rotation....
Key Levels:
Resistance: 1,1900
Support levels: 1,1870 and 1,1840.
