KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
US mortgage rates fell for a fourth straight week, edging closer to the 6% mark, though economic uncertainty continues to keep potential homebuyers on the sidelines.
Rates at One-Year Low
The average 30-year fixed mortgage rate dropped to 6.17%, down slightly from 6.19% a week earlier — the lowest level since October 2024, according to data from Freddie Mac.
The decline followed the Federal Reserve’s quarter-point rate cut on Wednesday, though Chair Jerome Powellwarned investors not to expect additional easing this year.
Muted Demand Despite Lower Borrowing Costs
Typically, falling rates paired with a strong stock market signal rising housing demand. But in this cycle, buyer sentiment remains weak.
Recent data showed pending home sales were flat in September despite growing inventory levels, underscoring lingering caution among consumers worried about tariffs, job security, and the ongoing government shutdown.
“Absent surprisingly slower economic activity, rates aren’t likely to move much lower,” said Danielle Hale, chief economist at Realtor.com.
Outlook: A ‘Sweet Spot’ for Buyers?
Some analysts suggest that now could be an opportune window for buyers who are financially ready.
“Economic concerns could also mean rising rates through the end of the year,” said Lisa Sturtevant, economist at Bright MLS. “For prospective buyers, right now could be a sweet spot for lower rates and more inventory.”
Investor Takeaway
Mortgage rates: 6.17% and trending lower
Home sales: Flat despite improved affordability
Macro drivers: Fed rate cuts, trade worries, and labor uncertainty
While the latest rate relief may stabilize housing sentiment, structural challenges — from economic headwinds to affordability pressures — continue to cap a sharp recovery in the US property market.
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