Key Takeaways
- US 30-year mortgage rates climbed to 6.66%, marking their highest level in a year and the fourth consecutive weekly increase.
- The Bank of England (BoE) maintained interest rates at 3.75% in a split 6-3 vote, citing "benign" domestic conditions despite global energy price volatility.
- Qualcomm (QCOM) announced double-digit price hikes for its Snapdragon chips effective September 1, driven by "dramatic" surges in memory costs.
- Citadel acquired the bulk of Situational Awareness's public equity portfolio after the AI-focused hedge fund faced severe margin pressure on its $20 billion asset base.
- Enel (ENEL) reported H1 adjusted net income of €3.93 billion, beating estimates of €3.75 billion and raising its full-year EPS outlook to the high end of guidance.
US Housing Market Faces Fresh Headwinds
The average rate on a 30-year fixed-rate mortgage rose to 6.66% for the week ending July 30, up from 6.58% the previous week. According to Freddie Mac (FMCC), this is the highest level seen in 12 months, further straining affordability for prospective homebuyers. The 15-year fixed-rate mortgage also saw an uptick, averaging 6.04% compared to 5.96% last week.
Market analysts suggest that the persistent rise in rates is a reflection of bond market volatility and expectations of "hotter" inflation driven by ongoing energy shocks. While inventory has shown signs of improvement, the high cost of borrowing continues to keep many buyers on the sidelines, leading to sluggish national home sales.
Central Banks and Corporate Earnings
The Bank of England kept its benchmark rate at 3.75% today, though three members of the Monetary Policy Committee (MPC) dissented in favor of a 25-basis-point hike. Governor Andrew Bailey noted that while disinflation is proceeding, the pace remains slow. He characterized current market pricing as "reasonable" but warned that the bank remains ready to tighten policy if Middle East-related energy shocks persist.
In the corporate sector, Italian energy giant Enel (ENEL) delivered a strong first-half performance. The company reported revenue of €40.92 billion, surpassing the estimated €40.06 billion. Driven by growth in regulated networks, adjusted EBITDA reached €11.84 billion. Management now expects 2026 earnings per share to land at approximately €0.74, the top end of its previous guidance range.
Tech and Hedge Fund Turmoil
Qualcomm (QCOM) CEO Cristiano Amon confirmed that the company will implement broad price increases across its product portfolio starting September 1. Amon described the rise in memory chip prices as "very dramatic," impacting consumer purchasing behavior and shifting demand toward lower-end premium devices. The company's mobile handset chip sales fell 20% year-over-year to $5.1 billion as input costs for wafer fabrication and packaging also climbed.
In the financial sector, Citadel has reportedly acquired the majority of the public assets of Situational Awareness, a hedge fund led by former OpenAI researcher Leopold Aschenbrenner. The fund, which grew to roughly $20 billion on the back of concentrated AI bets, suffered a massive liquidation event due to margin pressure from high leverage. While its public book was sold, reports indicate Situational Awareness will continue to operate as a private investment firm, retaining its significant stake in Anthropic.
Geopolitical Tensions and Blockades
U.S. Central Command (CENTCOM) issued a statement refuting claims by Iranian state media that a commercial tanker, the M/T Nora, had breached the American naval blockade. CENTCOM affirmed that the blockade remains fully enforced by over 20 warships and hundreds of aircraft. To date, U.S. forces have redirected 20 commercial vessels and disabled two others attempting to reach Iranian ports.
In Gaza, diplomatic sources report progress on a 15-point disarmament roadmap for Hamas, though Israeli officials have expressed significant objections. An Israeli political source stated that the military will not withdraw from the "Yellow Line"—a shifting zone of control currently covering roughly 65% of the Gaza Strip—until the territory is fully demilitarized and Hamas is disarmed.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.