Morning Report – Hello Hercules 1/2/14

Vital Statistics:

Last Change Percent
S&P Futures 1836.4 -4.7 -0.26%
Eurostoxx Index 3086.9 -22.1 -0.71%
Oil (WTI) 97.66 -0.8 -0.77%
LIBOR 0.243 -0.003 -1.32%
US Dollar Index (DXY) 80.69 0.581 0.73%
10 Year Govt Bond Yield 3.02% -0.01%
Current Coupon Ginnie Mae TBA 104 0.1
Current Coupon Fannie Mae TBA 103.1 0.1
RPX Composite Real Estate Index 200.7 -0.2
BankRate 30 Year Fixed Rate Mortgage 4.55
Markets are down to kick off the new year. Bonds and MBS are down. Initial Jobless Claims came in at 339k, a little lower than expected. We are scheduled to get hit with a big snowstorm this afternoon in the Northeast, so I would imagine bonds are going to become a little more illiquid this afternoon.
Some more bullish economic data – the Dec ISM manufacturing index came in a little better than expected at 57, and construction spending increased 1% month-over-month, topping expectations.
The buy-and-rent business is getting tougher. Part of the reason why the origination business has been so tough is that the most aggressive buyers these days are cash institutional buyers. Depending on who you ask, cash buyers are anywhere from 40% to 50% of buyers these days. Historically they have been closer to 20%. So even if existing home sales stay the same, the number of homes with mortgages on them could increase 45% or so if we went back to normal cash / mortgage percentages.

14 Responses

  1. This is in reference to above.


  2. Things NovaHockey said months ago:

    “Study: Expanding Medicaid doesn’t reduce ER trips. It increases them.
    By Sarah Kliff
    January 2 at 2:00 pm

    “I would view it as part of a broader set of evidence that covering people with health insurance doesn’t save money,” says Jonathan Gruber, a health economist at the Massachusetts Institute of Technology, who has also studied Oregon’s Medicaid expansion but is not affiliated with this study. “That was sometimes a misleading motivator for the Affordable Care Act. The law isn’t designed to save money. It’s designed to improve health, and that’s going to cost money.””


  3. I like how the new talking point is “ACA was never going to save money. it was all about expanding coverage.”


  4. Why is the Abomination better than pre-abomination if it doesn’t keep people out of the ER and it reduces the overall number of uninsured?


    • McWing:

      Why is the Abomination better than pre-abomination if it doesn’t keep people out of the ER and it reduces the overall number of uninsured?

      And it doesn’t save money.

      In all seriousness, has there ever been a bigger policy fraud perpetrated by a president on the electorate than O-care?


  5. Scott, no.

    Who here supports the ban on incandescent light bulbs and why?

    Just curious.


    • Not me. It actually really pisses me off.

      BTW, I should point out that the only marginally acceptable thing about the smoking bans is that they are state, not federal laws. But how long until the Feds decide to bring rebellious states into line?


  6. give him a break – that water’s heavy…


  7. Or perhaps he just wants to make a lot more $$$$$.


  8. So he’s leaving the Administration and cashing out.


  9. Hey now. Let’s not be too hard on him for that.


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