Morning Report: Home prices rise 5% 9/27/16

Vital Statistics:

Last Change
S&P Futures 2142.2 2.0
Eurostoxx Index 338.6 -1.0
Oil (WTI) 44.8 0.5
US dollar index 86.4 -0.2
10 Year Govt Bond Yield 1.56%
Current Coupon Fannie Mae TBA 103.3
Current Coupon Ginnie Mae TBA 104.2
30 Year Fixed Rate Mortgage 3.47

Markets are lower this morning on no real news. Bonds and MBS are up small.

Donald Trump and Hillary Clinton had their first debate last night. Early polls are showing Hillary won, however the debates went up against Monday Night Football, so the sample is going to skew female. Major media outlets are declaring the winner based on their ideological leanings: Bloomberg says Hillary won, and the WSJ says that Trump won. Did the debate change anyone’s vote? We’ll see, but my suspicion is that people’s minds are more or less made up at this point.

Global bonds have been rallying, but the US 10 year hasn’t been following suit. The German Bund is now back at -15 basis points. Meanwhile, Blackrock is advising caution in Treasuries as the Fed starts hiking rates. Global central banks are selling Treasuries, which is putting pressure on yields.

Tim Duy says December is a good bet for another tightening, but next year’s voting members will skew more dovish than the current FOMC.

Home prices were flat month-over-month and are up 5% for the year, according to the Case-Shiller home price index. The real estate indices are beginning to show a slowdown in home price appreciation. Until we start seeing wage inflation, real estate prices will be stretched versus incomes. The labor market continues to send mixed signals.

3 Responses

  1. Frist! Because everybody started commenting on the debate post. 😉

    Liked by 1 person

  2. NYT says:

    Wells Fargo has announced that it will claw back pay worth $41 million from John G. Stumpf, the chief executive.

    The move marks one of the first times since the financial crisis that a chief executive has been forced to give up compensation.

    But Mr. Stumpf is not the only one facing clawbacks.

    Carrie Tolstedt, who led the Wells Fargo community banking division, will surrender stock grants worth about $19 million. Both executives will forgo bonus payments for the year and Mr. Stumpf will forgo his $2.8 million a year salary while the board is investigating.

    It seems that the board has belatedly remembered its duties to the bank, Gretchen Morgenson writes [NYT]. It has, until now, been fairly remiss, especially given that two Wells Fargo directors are former financial regulators with extensive experience in consumer banking.

    Like

  3. Been reading the NYT this morning. The following on the recent Charlotte shooting is interesting.

    http://www.nytimes.com/2016/09/28/us/keith-lamont-scott-charlote-police-shooting.html?emc=edit_th_20160928&nl=todaysheadlines&nlid=55859017&_r=0

    How much you wanna bet that cops who called in his LP got real alert when his rap sheet came back to them?

    Further, her protest that he didn’t have a gun is undermined. Police say they recovered gun and ankle holster.

    While his conduct doesn’t appear to require him being shot down, and there should be an investigation, I think the potential of a highly successful civil suit is greatly diminished.

    Like

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