Morning Report: Delinquencies hit a 10 year low 8/12/16

Vital Statistics:

Last Change
S&P Futures 2180.0 10.0
Eurostoxx Index 346.0 -1.2
Oil (WTI) 43.7 0.1
US dollar index 86.1 -0.2
10 Year Govt Bond Yield 1.49%
Current Coupon Fannie Mae TBA 103.3
Current Coupon Ginnie Mae TBA 104.2
30 Year Fixed Rate Mortgage 3.52


Stocks are higher this morning on strong economic news out of Europe. Bonds and MBS are up.
Retail Sales were flat in July. Ex-autos and gas they were down. Basically autos and ecommerce did okay, and everything else was lousy. Speaking of lousy, we are getting retailer earnings and for the most part they are disappointing.
Inflation at the wholesale level is nowhere to be found, with the producer price index falling .4% in July versus expectations of a .1% increase. The core PPI was up .8% YOY.
Business inventories barely moved in July, increasing by 0.2%.
Consumer sentiment came in lower than expected as well.
The National Association of Federal Credit Unions blames high prices and tight regulation for the lack of housing that people in the middle class can afford.
Delinquency rates hit a 10 year low in the second quarter according to the MBA. The number of homes in foreclosure hit 1.64%, down 10 basis points from the first quarter and 40 basis points from a year ago. VA loans are performing the best, while FHA are performing the worst.

Partisan conflict is the highest since 1984, according to the Philly Fed. This conflict supposedly suppresses economic growth.

7 Responses

  1. The longer the political season goes on (and now it appears that it never stops), the more I think Peter Thiel has it right.


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