Episode summary
Daybreak Weekend: US Mortgages, Nobel Prize, China Golden Week | Bloomberg Daybreak: US Edition
Bloomberg Daybreak: US Edition
· · 39 min · Hosts: Nathan Hager
Summary
U.S. mortgage rates were the opening focus, with the host saying the 30-year fixed rate had climbed for a sixth straight week to 7.3%, the highest since November 2023. Erica Adelberg of Bloomberg Intelligence said rates have made homebuying unaffordable for a wide swath of Americans, pushed refinancings out of the money, and driven more borrowers toward adjustable-rate mortgages. She also said weak jobs data could give the Federal Reserve room to pause, which might ease some pressure on mortgage rates and housing demand.
The week-ahead stock watch centered on Constellation Brands, PepsiCo and Delta Air Lines. Christina Kino said Constellation faces structural headwinds from lower alcohol consumption, younger consumers shifting away from beer, and GLP-1 usage. She said PepsiCo is seeing similar pressure in snacks and beverages, while Delta’s results will likely hinge on fuel costs, premium demand and how much fare increases can offset margin pressure.
The program also looked ahead to the Nobel Prize announcements and China’s Golden Week. Bloomberg’s Nordics team said the Peace Prize remains politically sensitive, with Donald Trump again among the betting-market names, even as the Nobel Committee insists on independence. In Asia, Shirley Xiao said early Golden Week signs were positive for travel and spending, especially in Hong Kong and Macau, but she cautioned that weaker consumer confidence, luxury softness and China’s tax crackdown still cloud the outlook.
Key takeaways
- Erica Adelberg said 30-year mortgage rates at 7.3% are making refinancing unattractive and pushing some borrowers into adjustable-rate loans.
- The host said the National Association of Realtors affordability gauge suggests more than 50% of Americans cannot afford a median-priced home.
- Christina Kino said Constellation Brands faces a tough beer market as younger consumers drink less and GLP-1 usage weighs on demand.
- Kino said PepsiCo is facing downgraded expectations because salty snacks and North American food and beverage demand are weakening.
- Shirley Xiao said Golden Week travel and spending have started strongly, especially to Hong Kong and Macau, but China’s softer consumer mood remains a drag.
Notable quotes
“mortgage rates climbing for a six straight week to an almost threeyear high. The contract rate on a 30-year fix rising to 7.3%”
“they've become unaffordable for a pretty wide swath of Americans right now. And also, refinancings have gone completely out of the money”
“up to 10% of FHA borrowers up to like 12% overall go into adjustable rate mortgages as an alternative”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. This is Bloomberg Daybreak Weekend, our global look at the top stories in the coming week from our Daybreak anchors all around the world. Just ahead on the program, we'll discuss mortgage rates in the US and also the outlook for the housing market moving forward. I'm John Tucker in New York. I'm Tim Adabio in London where we're asking just how political this year's Nobel Prize presentations could get.
I'm Doug Krishnner looking at how Chinese consumers may spend during the Golden Week holiday. That's all straight ahead on Bloomberg Daybreak Weekend on Bloomberg 1130 New York, Bloomberg 991 Washington DC, Bloomberg 929 Boston, DAB Digital Radio London, SiriusXM121 and around the world on Bloombergradio.com and the Bloomberg Business app.
Hi everybody, I'm John Tucker. Let's start today's program with US mortgage rates. Uh the mortgage rates climbing for a six straight week to an almost threeyear high.
The contract rate on a 30-year fix rising to 7.3%. That's the highest since November of 2023. For more, we're joined by Erica Adelberg, Bloomberg Intelligence Chief Mortgage back securities strategist.
That's quite a title. Um what is the state of housing? more importantly, um, how mortgages are dictating what's happening in the housing market right now.
Hi, thanks for asking me to join today. Um, yeah, mortgage rates are definitely getting to that point where they've become unaffordable for a pretty wide swath of Americans right now. And also, refinancings have gone completely out of the money.
A lot of people who may have bought mortgages, uh, bought homes in the past few years hoping to refinance are pretty out of luck right now. Uh but it's interesting you mentioned the ARM rate because actually we are seeing an increasing number of borrowers uh up to 10% of FHA borrowers up to like 12% overall go into adjustable rate mortgages as an alternative.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- us mortgage data
- stocks for the week ahead
- nobel prize decisions
- china golden week holiday
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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