KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
Mortgage rates in the US rose for the fourth consecutive week, with the average rate for a 30-year fixed mortgage reaching 6.54%, up from 6.44% the previous week, according to Freddie Mac. This marks the highest borrowing cost since early August, further straining affordability for homebuyers.
At the current average rate, monthly payments on a $600,000 loan would be approximately $3,808, up significantly from $3,628 when rates dropped to 6.08% in late September.
Sam Khater, chief economist at Freddie Mac, attributed the rise in rates to economic data outperforming downbeat expectations, contributing to volatility in mortgage rates. Recent data, including a decline in initial jobless claims, has reinforced the strength of the economy ahead of the Federal Reserve's upcoming November meeting.
While affordability pressures continue to weigh on the housing market, with sales of previously owned homes slipping to a 14-year low in September, the new home market remains robust. Purchases of new homes jumped last month to the fastest pace in more than a year.
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