updraftplus domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131hustle domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131wpforms-lite domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131The Mortgage Bankers Association said there was a 10% jump in homeownership demand last week in anticipation of paused rate hikes.
Mortgage demand in the US recently climbed considerably after the Federal Reserve signaled that it could pause interest rate hikes. The increase in applications for home-buying was a direct result of reduced mortgage rates last week. Although last week’s drop in mortgage rates was not substantial, it was enough to induce current homeownership demand. As it stands, more homeowners look to refinance their mortgages to lower rates.
Mortgage refinancing applications jumped 10% last week compared with the preceding week. However, applications to refinance a home were still 44% lower compared to the same period last year. In addition, mortgage applications for home-buying rose 5% this week, although the figure was still way off on a year-over-year (YoY) basis. During the same week in 2022, applications for mortgages were 32% higher.
The average 30-year fixed-rate mortgage contract interest rate with loan balances of $726,200 or less declined last week to 6.48% from 6.50%. Additionally, inherent points also decreased from 0.63 (including the origination fee) to 0.61 for loans with a down payment of 20%. In addition, the Mortgage Bankers Association’s weekly survey said that mortgage rates decreased over the week for all surveyed loan types.
In a release, the MBA’s deputy chief economist Joel Kan talked about the mortgage application development, saying:
“Mortgage applications responded positively to a drop in rates last week, as the Fed signaled a potential pause at the current level for the federal funds rate in anticipation of inflation slowing and tightening financial conditions that will slow economic and job growth.”
Despite the Fed cooling off on further rate hikes, the prices of homes remain relatively high from previous exertions. Although home prices have appeared to ease since last summer, strong demand and low supply contribute to rising prices.
In March, mortgage demand rose despite volatile interest rates in the first quarter of the year. At the time, prospective homebuyers, seemingly unperturbed by the Fed’s inflation-induced fiscal exertions, increasingly applied for home-purchase assistance. However, despite mortgage demand jumping 7% on the week to mark a second consecutive week climb, it still paled YoY. March reports stated that the demand to buy homes was still at a 38% drawdown compared to the same period in 2022.
In the first quarter of 2023, leading home construction company Lennar Corp (NYSE: LEN) posted commendable earnings. Lennar Corp benefitted from the spike in mortgage-related activities in March, with the company’s chairman Stuart Miller, explaining in a release:
“Home buyers are considering the possibility that today’s interest rate environment may be the new normal. Accordingly, the housing market continues shifting as growing household and family formation continued to drive demand against a chronic supply shortage.”
Miller also added that Lennar Corp experienced a “generally” strong economy as the housing market continued to find its footing.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
As the tech space digests the Alibaba news, attention also shifts to what becomes of Ant Group’s 2020 suspended IPO.
The decision by Alibaba Group (NYSE: BABA) to split its business into 6 places has renewed focus on the suspended Ant Group IPO. At the beginning of the week, Alibaba announced plans to split into 6 independent business groups. According to the Chinese e-commerce giant, this decision is strategic and would allow each business unit to operate unrestrained. Alibaba further explained that each group would have its own CEO and board of directors. In addition, the Hangzhou-based tech giant said the sub-divisions could generate their IPOs and go public should they choose to. Alibaba described the split as necessary to unlock shareholder value and foster market competitiveness.
However, the attempt to become lighter and more exclusively service-oriented puts the spotlight back on affiliate company Ant. In November 2020, Ant’s record-shattering initial public offering in Shanghai and Hong Kong was unexpectedly canceled. At the time, the multifaceted corporation sought a public offering worth $34.5 billion. However, the Shanghai and Hong Kong stock exchanges announced the IPO suspension citing “significant issues.”
Last November, Chinese regulators summoned Ant Group’s senior executives amid the IPO suspension. These execs, controller Jack Ma, executive chairman Eric Jing, and CEO Simon Hu, fielded questions regarding Ant’s alleged inability to meet listing requirements.
Kingston Securities Executive Director Dickie Wong weighed in on the Alibaba business news and how the Ant Group IPO factors in. Wong said that Alibaba is aiming for a bigger target, plausibly the reintroduction of an Ant listing. According to him, “[reintroducing an Ant IPO into the equities market] is probably the biggest goal for Alibaba Group itself.” Although the Kingston Securities Executive Director admitted that the expected listing would not occur anytime soon, he maintained that “there’s big hope.” Wong concluded that an Ant IPO deal could happen sooner rather than later.
Wong’s assertion seems to be bolstered by recent happenings at Ant Group. For instance, the company secured regulatory approval in early January to expand its consumer finance business. Some observers see this development as a sign that Ant is closer to resolving regulators’ concerns.
KraneShares’ CIO Brendan Ahern also weighed in on the Alibaba business split announcement – and the lack of any reference to Ant. According to Ahern, although the e-commerce company did not mention Ant, investors could still focus on Ant’s IPO. The KraneShares’ CIO said:
“The one part about the press release that I think the investors will be asking for is the lack of talk about Ant Group. But certainty the renewed relationship or the good graces of Alibaba along with the government and its regulators is really driven by China’s necessity for domestic consumption in 2023.”
The Hang Seng Tech index gained approximately 3% following the Alibaba announcement. This gain is the Hong Kong index’s highest in over a month, with Alibaba shares and other Chinese tech giants popping.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
Major crypto exchange will suspend Cardano (ADA) withdrawals and deposits in February
On the evening of Feb. 14, major cryptocurrency exchange Binance will temporarily suspend deposits and withdrawals on the Cardano network, it was reported. The reason for this decision is the upcoming Valentine’s Day update of the Cardano network, called SECP.
The update, which stands for standards for efficient cryptography (SECP), is due to take place at block height 8,403,208. The point of the update is to add new built-in features to the language and smart contract programming platform for Cardano, Plutus.
In particular, these features include updates to cryptographic primitives and support for ECDSA and Schnorr format signatures used on many networks outside Cardano. With this update, the plan is to optimize Plutus to make it easier for smart contracts developers to create interoperable cross-chain applications.
Looking back at the experience of preparing for Cardano’s previous major upgrade, Vasil hard fork, let’s look at node compliance and exchange readiness. Thus, according to the website of Cardano‘s parent company, Input Output Global, more than 75% of staking pool operators are running the appropriate versions of the nodes.
As far as exchanges are concerned, the only major exchange that is fully prepared for the SECP update is Binance. However, other exchanges are also already in a state of preparation — even Coinbase.
Silvergate Capital Corp ended 5.0% down on Friday after the crypto bank suspended dividend on its preferred stock.
The embattled digital currency services company is cutting back on the payout to preserve capital. Its press release reads:
This decision reflects the Company’s focus on maintaining a highly liquid balance sheet with a strong capital position. Company continues to maintain a cash position in excess of its digital asset customer related deposits.
The California-based company also confirmed that its Board will re-evaluate the quarterly payment once market conditions improve.
Silvergate stock has lost over 85% since mid-August, related partially to the FTX collapse. Consequently, billionaire investor Cathie Wood almost entirely pulled out of it at the start of the new year.
According to a Wedbush Securities analyst, suspending Series A preferred stock dividend will make things more difficult for this financial infrastructure solutions firm in the long run.
Reiterating his “neutral” rating on the Silvergate stock on Friday, David Chiaverini said:
We believe this move could raise Silvergate’s cost of capital down the road when Silvergate attempts to tap the capital markets for a future capital raise. Any new fixed income or preferred issuance will require a higher coupon.
His $13 price objective on the stock suggests it lacks any upside whatsoever. Earlier in January, Silvergate Capital Corp said average deposits from digital asset customers tanked 39% to $7.3 billion in its fourth quarter as Coin Journal reported here.