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    MBA mortgage applications in the United States increased from 0.3% to 28.5% recently

    by VT Markets
    /
    Jan 14, 2026
    US MBA Mortgage Applications rose significantly, jumping from 0.3% to 28.5% by January 9. This increase indicates changes in the housing market. US Retail Sales data has been released, showing trends that could affect economic growth, particularly in the fourth quarter GDP. Financial markets are reacting to various economic indicators that influence currency pairs and commodities.

    Key Economic Indicators

    As these economic changes unfold, analysts are focusing on important metrics like the Producer Price Index (PPI) and inflation rates. They are also offering training and educational resources for traders in global markets. The significant 28.5% rise in mortgage applications for the week of January 9th is a direct response to falling mortgage rates. The average 30-year fixed rate likely dropped below 6.0%, leading to the highest surge in applications since early 2023. This suggests that the previously struggling housing market may finally be stabilizing, creating clear opportunities. Given this information, traders should consider bullish strategies on housing-related stocks. Call options on homebuilder ETFs could do well if this housing demand continues. This is particularly relevant since housing starts were slow for most of 2025; any uptick in demand could quickly enhance builder sentiment and stock prices. On another note, the retail sales data for December showed little change, falling below expectations. This weak consumer spending, combined with cooling inflation reports from late last year, supports the idea that the Federal Reserve may begin to cut interest rates soon. We should prepare for this by exploring financial instruments that benefit from falling yields, like options on Treasury note futures.

    Impact on US Dollar

    The possibility of Federal Reserve rate cuts will likely weaken the U.S. dollar. A weaker dollar usually follows the start of Fed easing cycles, similar to what we saw in the second half of 2023. Therefore, considering put options on the U.S. Dollar Index (DXY) or call options on currency pairs like EUR/USD could be a smart move. Create your live VT Markets account and start trading now.

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