The report indicated that higher interest rates continued to put pressure on the housing market activity. The rates on 30-year mortgages have settled
The report indicated that higher interest rates continued to put pressure on the housing market activity. The rates on 30-year mortgages have settled above the 7.00% level, which is bearish for the housing market.
FedWatch Tool indicates that there is a 99.0% probability that Fed will leave the federal funds rate unchanged on Wednesday. However, traders believe that there is a 35.4% probability of an additional rate hike by the end of the year.
U.S. dollar is mostly flat against a broad basket of currencies after the release of the report. Traders are not ready for big moves ahead of the Fed meeting.
Gold has recently pulled back below the $1925 level. The weaker-than-expected housing report may provide some support to gold markets, although the Fed meeting will remain the key catalyst for this week.
SP500 moved towards session highs as traders reacted to the report. The problems in the housing market may serve as a bullish catalyst for stocks as the Fed may be less hawkish.
For a look at all of today’s economic events, check out our economic calendar.
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