Daily Newsletter 8/20/25
According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending August 15, 2025, mortgage applications fell by 1.4% compared to the previous week.
The Mortgage Bankers Association (MBA) Mortgage Applications report tracks the weekly change in the number of new mortgage applications processed by the MBA.
Mortgage applications are a valuable economic indicator because they provide real-time insight into the health of the housing market and broader consumer sentiment.
The current state of the U.S. housing market reflects a cautious consumer view of the economy. High mortgage rates and affordability challenges have made many potential homebuyers hesitant or financially constrained, signaling subdued confidence in their personal financial outlook. Mortgage rates remain elevated compared to pre-pandemic lows, affecting borrowing costs and dampening buyer enthusiasm. The housing market is gradually normalizing but continues to challenge prospective buyers amid high rates and limited affordable inventory.
To forecast the economy’s direction, one of the key factors to consider is how consumers perceive the market—their confidence levels and inflation expectations. In other words, as long as consumers continue to spend, there is little reason to anticipate a significant shift in economic conditions, unless triggered by geopolitical events.
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The AI sector has been caught up in a bubble that significantly impacted the Tech industry as a whole. The strong appeal of AI stories pushed these stocks to extraordinary highs, but now they are experiencing a correction back to more sustainable levels.
Although the underlying fundamentals remain solid, popular investment themes tend to attract excessive attention, inflating a bubble until it becomes overextended—and when even casual or uninformed investors jump in, a pullback becomes inevitable.
In 2025, several standout stocks are leading the charge in the booming field of artificial intelligence (AI). Palantir Technologies (PLTR) shines with its AI-powered data analytics, demonstrating impressive stock performance alongside growing commercial success. Nvidia (NVDA) remains a key player, supplying the critical chips that drive AI innovations across a range of industries and earning its reputation as a foundational AI stock. GE Vernova (GEV) is seeing rapid growth fueled by its investments in AI and cutting-edge technology, while Super Micro Computer (SMCI) is making waves with its AI servers in partnership with Nvidia. Seagate Technology (STX) plays a vital role by providing the data storage solutions essential for handling AI workloads, and NRG Energy (NRG) is adapting to AI-driven changes in the energy landscape.
Beyond these, major tech giants such as Broadcom (AVGO), Advanced Micro Devices (AMD), Snowflake (SNOW), Amazon (AMZN), Alphabet (GOOGL), Meta Platforms (META), and Microsoft (MSFT) are investing heavily in AI, forming a diverse and dynamic ecosystem that spans software, semiconductors, hardware, and cloud services. Together, these companies illustrate the wide-reaching impact of AI across multiple sectors and highlight the exciting opportunities this technology continues to create in 2025.
Additionally, concerns are rising that the Federal Reserve may delay easing policies, as investors come to terms with the possibility that inflation could be steady around 3%, with tariffs further adding to cost pressures.