As the US economy gains strength to average economic growth, this will increase demand for minerals including iron ore coal nickel zinc aluminium copper etc!
For FWL, iron ore is the key!
It seems like the short term fall in housing starts after the US Govts tax break ended in April is starting to reverse in a big way.
Loans for housing rose significantly last week, the highest since the begining of the GFC! Showing signs the US economy isnt as bleak as some people have been saying.
It is a good sign when housing loans begin to rise without any stimulus efforts. The first thing that increases in demand when US housing rises is copper!
Watch for the price of copper to increase in coming months as this is the commodity most affected by US housing. Its already sitting at $7000 per tonne from Kinesi demand, if US comes to the party over the next few months it could touch $7.5-7.9k per tonne!
Aug 18 (Reuters) - U.S. mortgage applications leaped last week as rock-bottom interest rates lifted demand for home refinancing to its highest level in 15 months, a development that could portend stronger economic growth.
Home loan refinancing puts extra cash into consumers' hands that can be used to pay off existing debt or funnel money into the economy through extra spending.
By lowering a monthly mortgage payment it may also help some homeowners avoid default and foreclosure if their credit is good enough.
The Mortgage Bankers Association said on Wednesday its seasonally adjusted index of mortgage applications USMGM=ECI, which includes both purchase and refinance loans, for the week ended Aug. 13, increased 13.0 percent. The four-week moving average of mortgage applications, which smooths the volatile weekly figures, was up 2.6 percent.
The MBA's seasonally adjusted index of refinancing applications USMGR=ECI increased 17.1 percent, the biggest jump since the week ended May 15, 2009.
"Refinancing will help free up cash for homeowners that would have otherwise been tied into their home and this cash could help support consumer spending, and therefore GDP, albeit only modestly," said Michelle Meyer, senior U.S. economist at BofA Merrill Lynch in New York.
With investors worrying about deflation and a double-dip recession, the first revision to second quarter GDP data, due Friday, August 27, will be closely watched. Bank of America Merrill Lynch forecasts a downward revision to 1.5 percent.
One sign that consumers may already be opening their wallets emerged on Wednesday when one of the largest U.S. retailers, Target Corp (TGT.N), on Wednesday, when it posted higher quarterly earnings.
