January 24, 2024
United States:
US Home Purchase Applications Increase to Highest Since April
Applications for home-purchase mortgages in the US rose to the highest level since April, signaling housing demand is picking up as borrowing costs hold below 7%.
The Mortgage Bankers Association’s index of mortgage applications to buy a home increased 7.5% to 174.3 in the week ended Jan. 19, according to data released Wednesday. The advance followed a 9.2% increase in the prior week that was the largest in a year.
United Kingdom:
UK Inflation Concerns Return as Red Sea Attacks Lift Prices
British companies reported a jump in the prices they pay due to attacks on shipping in the Red Sea upsetting supply chains, a shift that may boost inflation and delay interest-rate reductions.
S&P Global’s Composite Purchasing Managers’ Index showed the sharpest jump in costs in five months in January with delivery times lengthening for the first time in 12 months. A separate survey from the Confederation of British Industry said average costs for manufacturers accelerated in the quarter to January, with further price rises expected in the coming months.
Asia:
China Boosts Stimulus by Allowing Banks to Keep Smaller Reserves
China said it will cut the reserve requirement ratio for banks within two weeks and hinted at more support measures to come, an unusually early disclosure that shows mounting urgency across President Xi Jinping’s government to shore up the economy and halt a $6 trillion stock-market rout.
The RRR — which determines the amount of cash banks have to keep in reserve — will be lowered by 0.5 percentage points on Feb. 5 to provide 1 trillion yuan ($139 billion) in long-term liquidity to the market, the People’s Bank of China’s Governor Pan Gongsheng told reporters at a briefing.
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