November 16, 2022
US Mortgage Rates Drop Below 7% in Biggest Decline Since July
US mortgage rates fell last week by the most since the end of July, slipping below 7% and helping generate a bounce in purchase applications that otherwise remain depressed.
The contract rate on a 30-year fixed mortgage decreased 24 basis points to 6.9% in the week ended Nov. 11, according to Mortgage Bankers Association data released Wednesday. The group’s index of applications to buy a home rose 4.4% — the most since June — but is still near the weakest level since 2015.
ECB Warns Record Inflation Spells Trouble for Banks, States
The European Central Bank warned of rising stability risks for everyone from lenders to governments and households as the economic outlook darkens and officials battle record inflation.
The cost-of-living squeeze is hurting people’s ability to service debts, while Europe’s worsening growth prospects threaten corporate profits, the ECB said Wednesday in its Financial Stability Review.
China Developers’ Rush to Raise Funds Triggers Stock Selloff
Chinese developer shares tumbled after Agile Group Holdings Ltd. became the second real estate company in as many days to announce capital raising plans.
Agile said it will sell stock at an 18% discount to raise HK$783 million ($100 million) via a top-up placement. Country Garden Holdings Co. on Tuesday said it will raise HK$3.9 billion, also with a 18% discount.
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