Morning Report – The low end of the housing market is outperforming 4/7/25

Markets are flattish this morning on no real news. Bonds and MBS are down small.

The ISM Services index slipped to 56.5 in March, while job openings hit their highest yet at 5.1 million.

It looks like the big bond rally on the weak jobs report was overdone. That said, there is no denying it was a lousy report, with payrolls coming in at 126k versus 245k expected, and the labor force participation rate falling back to its post-disco lows of 62.7%. About the only bright spot was the increase in wages. Can’t blame this jobs report on the weather, although we may be starting to feel the effects of the stronger dollar.

Tomorrow, we will get the minutes from the FOMC meeting last month. The focus will be on the thinking behind the removal of the word “patient.” Given the weakness in the economic data lately, the Fed may choose to make its first move in September.

We are starting to see the low end of the housing market outperform the high end, according to CoreLogic. Prices rose 5.6% in February and remain about 12% below the peak. House prices at the lower price points increased over 9%, while the high end increased about 5%. CoreLogic says this is the hottest price appreciation prior to the Spring Selling Season in 9 years. They are forecasting another 5% increase in prices this year.

13 Responses

  1. I can’t believe it’s 1:20 pm and I’m still FRIST. Hah!

    Like

  2. This post wasn’t here this morning. He was late! 😉

    On thusly did you achieve your easy victory.

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  3. Perhaps a score board is needed, along with a playoff series.

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  4. Paul Krugman on the proper size of government and debt.

    “The Fiscal Future I: The Hyperbolic Case for Bigger Government
    April 6, 2015 1:54 pm”

    http://krugman.blogs.nytimes.com/2015/04/06/the-fiscal-future-i-the-hyperbolic-case-for-bigger-government/

    “The Fiscal Future II: Not Enough Debt?
    April 7, 2015 10:53 am”

    http://krugman.blogs.nytimes.com/2015/04/07/the-fiscal-future-ii-not-enough-debt/

    Sort version: the government is too small and doesn’t have enough debt.

    At this point, calling Krugman a Keynesian is actually an insult to Keynes.

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  5. In honor of the 24 types of Libertarians, I would introduce a 24 types of liberals, with a bearded Krugman saying “the way to prosperity is to dig holes with spoons and fill them up”, and maybe a Robert Reich type saying “if we increase the minimum wage to a million bucks, we’ll all be rich.”

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  6. Sublime.

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  7. Watching Sean Davis go back and forth with Sally Kohn today on Twitter was astounding.

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  8. here you go, Brent

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  9. Like

  10. I gather you saw that exchange.

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  11. i couldn’t find it.

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  12. Ah, her exchange with Charles was the same.

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  13. what a fool

    Like

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