KUALA LUMPUR, June 5 (Bernama) -- Bursa Malaysia closed higher, with the benchmark index rising 0.60 per cent as bargain-hunting persisted following the recent sell-off, despite weaker performances across regional markets. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 10.17 points to 1,693.43 from Thursday's close of 1,683.26. The benchmark index opened 3.19 points higher at 1,686.45 and traded between 1,684.36 and 1,698.53 during the trading session. However, broader market sentiment remained negative, with losers outnumbering gainers 666 to 477. A total of 574 counters were unchanged, 958 untraded and 12 suspended. Turnover fell to 3.41 billion units worth RM3.04 billion from 3.47 billion units worth RM3.58 billion on Thursday.
The average rate on the popular US 30-year fixed-rate mortgage increased slightly to 6.78% for the week ending July 25, according to mortgage finance agency Freddie Mac. This rate is about half a percentage point below its peak earlier this year, as potential homebuyers continue to exhibit hesitancy.
Key Highlights:
Mortgage Rate Movement:
- The 30-year fixed-rate mortgage rose to 6.78%, up from 6.77% the previous week.
- The rate was 6.81% during the same period last year.
Market Hesitancy:
- Chief Economist Sam Khater noted that despite the lower rates, buyers remain cautious, as indicated by declining new and existing home sales data.
- Existing home sales fell 5.4% in June, marking the fourth consecutive monthly drop and the slowest rate since December.
Homeowner Behavior:
- Many homeowners are reluctant to sell properties purchased with lower mortgage rates, as buying a new home would likely result in a higher rate.
- Housing inventory has increased to its highest level in nearly four years, suggesting a shift from a seller's market to a buyer's market, according to NAR Chief Economist Lawrence Yun.
Market Competitiveness:
- Gaurav Khanna, a prospective homebuyer and economics professor at the University of California at San Diego, expressed concerns about entering bidding wars despite the increased inventory, indicating ongoing competitiveness in the market.
Insurance Premiums and Affordability:
- Rising homeowners insurance premiums are further impacting housing affordability.
- Many economists predict that home borrowing costs may ease later this year as the Federal Reserve is expected to cut interest rates amid easing inflation.
The slight increase in mortgage rates and the cautious approach by buyers reflect the current complexities in the housing market, balancing between competitive buying conditions and shifting economic indicators.
Comments
Post a Comment