SJ

Mortgage rates in the United States have reached 7%, reigniting debate over the direction of the housing market. The Wall Street Journal examines what higher borrowing costs mean for buyers, sellers and home prices. Commentators are weighing whether affordability pressures will cool demand further or whether rates have peaked, with homeowners locked into cheaper loans still reluctant to sell.

A Wall Street Journal analysis examines how banks profit from customers who leave money in low-interest accounts out of inertia, and whether AI tools could change that behavior. The piece suggests AI assistants might help consumers automatically find better rates and products, squeezing a long-standing source of bank funding.

Gold prices held steady in trading as investors refrained from major moves ahead of upcoming U.S. economic data releases. Traders are watching the figures closely for signals on the direction of interest rates and inflation, which typically influence demand for the metal. Commentators note markets are in a wait-and-see mode until the numbers come out.

China has introduced subsidies on some residential mortgages, according to the Wall Street Journal. The move is aimed at easing the burden on homebuyers as the country's property market struggles with weak demand and developers under financial pressure. Observers see it as another step in Beijing's efforts to stabilize the housing sector and support the broader economy.

Asian currencies are consolidating in quiet trading, but analysts at the Wall Street Journal note they could gain support from reduced expectations of further Federal Reserve rate hikes. Softer bets on additional US tightening would ease dollar strength, giving regional currencies room to recover after months of pressure.

The Wall Street Journal reports that Nvidia's massive share buyback program has inflated the company's market value beyond what its underlying business fundamentals justify, describing the effect as phantom value. The piece examines how repurchasing shares boosts earnings per share and stock prices without creating real economic gains, raising questions about how much of Nvidia's trillion-dollar valuation reflects genuine demand for its AI chips versus financial engineering.

The Wall Street Journal reports that the divide between ordinary wealthy households and the ultra-rich is growing, with gains at the very top increasingly outpacing the rest of the affluent tier. The piece examines how assets like stocks and private businesses are concentrating wealth among a small group, even as broader measures of inequality between rich and middle-class households receive more attention.

US Treasury bond yields continue to climb even after oil prices dropped and a Federal Reserve official delivered a dovish speech that would normally push rates down. The persistence of rising yields is puzzling investors, who expected easing inflation pressure from cheaper oil and a friendly Fed tone to calm the bond market. The move keeps pressure on borrowing costs for households, companies and the US government.

Senator John Cornyn of Texas sat down with the Wall Street Journal's Opinion Potomac Watch podcast to discuss special counsel Jack Smith, Texas Attorney General Ken Paxton, and the Republican Party's prospects in the upcoming midterm elections. The interview touches on ongoing legal and political controversies involving both figures and how they may shape GOP campaigns.