Vital Statistics:
Last | Change | |
S&P Futures | 2197.5 | 5.0 |
Eurostoxx Index | 341.5 | 1.3 |
Oil (WTI) | 48.5 | 1.8 |
US dollar index | 91.3 | 0.1 |
10 Year Govt Bond Yield | 2.31% | |
Current Coupon Fannie Mae TBA | 103 | |
Current Coupon Ginnie Mae TBA | 104 | |
30 Year Fixed Rate Mortgage | 3.99 |
Stocks are up this morning as commodities rise on anticipated economic strength. Bonds and MBS are flat.
Existing home sales rose 2% to a seasonally-adjusted run rate of 5.6 million in October, according to the NAR. September’s numbers were revised upward to 5.49 million. October’s number is 5.9% higher than a year ago, and the highest reading since February 2007. The median home price rose 6% to $232,200. Total housing inventory dipped to 2.02 million units, which represents a 4.3 month supply at current levels. NAR considers 6.5 month’s worth to be a balanced market. Days on market ticked up to 41 days from 39 the month before. The first time homebuyer accounted for 33% of all
sales, which is up a couple percentage points from a year ago. Now, if we could just get housing starts up to catch up with the increase in sales we could have a real recovery on our hands.
The post-election rise in interest rates is beginning to affect home sales. First time homebuyers are being hit particularly hard. One loan officer has great advice however: the increase in rates may appear dramatic, but the difference in monthly payment often is not. “I tell people, interest rates are 80 percent psychological and 20 percent math. I do the math for them and their next reaction is, ‘Oh that’s all?’ Forty dollars a month, $75 a month. They initially think it’s going to be a lot more painful than that,” said Anker, who added he hasn’t lost any deals yet. ” While we have yet to see any effect in the home price indices (that will probably be a few months out) be prepared for a deceleration in home price appreciation, and maybe even flat / declining prices in the hottest markets.
The Richmond Fed Manufacturing index improved last month from -4 to 4.
Speculators in the US Eurodollar market are betting $2.1 trillion that short term rates are going up as economic growth and inflation return. Note that yesterday, all of the major stock market indices hit new highs. We have been seeing the biggest asset allocation change out of bonds and into stocks over the past week.
Donald Trump took to YouTube last night to give an update on the transition. Probably the biggest news in that was essentially a moratorium on regulations – where for every new regulation, two must be removed. Not sure how that is going to work in practice. The Trans Pacific Partnership trade deal is probably dead at this point as well. Separately, he isn’t going to launch any further investigations on Hillary Clinton.
Front-runner for Treasury Secretary Steve Mnuchin was part of a Goldman consortium that bought failed bank IndyMac, renamed it OneWest and sold it to CIT. This was post-crisis, however his confirmation hearing (if he gets the nom) will undoubtedly spend some time on the mortgage industry and past practices.
Impac said that low interest rates hurt demand for non-QM products last quarter.
When the Chinese bet on real estate, they bet big.
Filed under: Economy, Morning Report |
Fristies!
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Smarty-pants. 🙂
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Why trump won: http://reason.com/blog/2016/11/22/university-bullied-students-to-change-am
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These people have jumped the shark…
my son’s friends who are all early teenagers mock this sort of stuff, especially the “I identify as” stuff… They were all joking at Boy Scouts that they identify as turnips, etc… They make fun of the gamergate SJWs who want to social engineer video game culture.
Difference of the generations…I’m sure all the hippies at the People’s Republic of Madison during the heyday of the early 70s never imagined a bunch of people like me would be walking around with Reagan / Bush ’84 buttons on their backpacks..
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“do we want to reverse that progress with a theme that divides us?””
Yes.
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This has to be a false flag. Surely no one would be so arrogant as to actually go public suggesting this?
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Dude says he has to document his income, how does he have a job and why does he think he’s entitled to one ahead of an actual citizen?
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And they questioned why some of us are opposed to a gun registry.
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The Obama administration asked us to trust the government with our information and that of our family, promising it was only a temporary measure until Congress would pass comprehensive immigration reform.
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Comprehensive immigration reform never came, and now we’re facing the most anti-immigrant presidency in recent history. President-elect Trump has already promised to deport at least 2 to 3 million “criminal” undocumented immigrants in his first year. Obama deported about that many in eight years — and that set a record for deportations in one presidency.
Call me crazy, but since Trump isn’t actually president yet and hasn’t actually deported anyone yet, doesn’t that make Obama’s “the most anti-immigrant presidency in recent history”?
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This is ubiquitous. Everybody knows all the details of all of Trump’s plans and talks about them as if they have already been signed into law and are being implemented. Everybody on PL already knows everything about Trump’s infrastructure plans, and it’s all toll roads and graft, as far as the eye can see.
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Fingers crossed on the toll roads.
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very deft conflating of border rejections to gestapo door-to-door searches…
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Now it’s time for Obama to own up to the fact that his administration failed on his own promise of finally pushing Congress to reform the immigration system, and he owes us a great debt.
One of the perils of being ignorant of the Constitutional is that you can fall prey to hucksters and charlatans who promise to do things that actually fall outside of the realm of things they are constitutionally empowered to do. Perhaps if Mr. Gomez went through the process of actually becoming an American citizen, he would have studied the constitution and he would have known better.
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I love the fact that he still has his Argentinian passport.
No, he’s not an undocumented immigrant. He’s got plenty of documentation.
He’s a foreign national.
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He’s a foreign national.
that’s what i’ve been saying. and i suggest that every R politician learn that phrase. immigrants do through a process. these are tourists who overstayed their welcome. and we’re flicking the porch lights on an off.
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Curious how he got his Argentinian passport if he’s been here since he was 3. Wouldn’t he have had to return to Argentina?
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McWing:
Curious how he got his Argentinian passport if he’s been here since he was 3. Wouldn’t he have had to return to Argentina?
Not sure how it works in Argentina, but all of my kids were born overseas, and each got a US passport in the US embassy/consulate in the place where we were residing at the time, before ever having made a trip to the US.
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Ah. Armed with that information ok going full birther on your kids should they ever run for POTUS.
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McWing;
Armed with that information ok going full birther on your kids should they ever run for POTUS.
The middle one’s on our side!
BTW, far more disqualifying than their place of birth will be their father’s history of internet comments.
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Donald Trump is considering Ben Carson for HUD. What’s next? Sam Zell for Surgeon General?
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He’s got to find room for Oprah Winfrey in his cabinet.
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Thought it was supposed to be the Westchester executive?
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Thats what I thought… It was on Twitter…
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So now that Trump has disavowed the alt-right is the left still hitting their fainting couches?
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seeing the latest from Dan Rather, I guess not…
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Conflicts of interest seemed to be the theme du jour . . . Oh no, Trump can do things that might benefit him financially!
They just discovered that.
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I love this.
http://www.cnn.com/2016/11/22/politics/hillary-clinton-challenge-results/index.html
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The scientists, among them J. Alex Halderman, the director of the University of Michigan Center for Computer Security and Society, told the Clinton campaign they believe there is a questionable trend of Clinton performing worse in counties that relied on electronic voting machines compared to paper ballots and optical scanners, according to the source.
I love how they automatically assume that the alleged discrepancy indicates HRC got cheated rather than did the cheating. It never occurs to them that perhaps Hillary did better in counties that didn’t use electronic ballots because it was harder for her team to hack into electronic ballots than to stuff ballot boxes with fake paper ballots.
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A self identified liberal telling Ds not to get tied up in their tighty-whities about Halderman’s assertions:
https://www.washingtonpost.com/news/the-fix/wp/2016/11/23/attention-democrats-theres-still-no-good-evidence-the-election-was-rigged/
Better for Ds to look at why having no message for underemployed formerly well paid unskilled workers didn’t sell as well as DJT’s phony promises.
Or, in some cases, why the D’s phony promises didn’t sell as well.
In the midwest it was apparently generally thought from Kenosha to Youngstown that the Ds were taking them for granted.
Wallowing in “rigged election” BS, mirror imaging what DJT would have said if he had lost [we know this because he said it repeatedly when he thought he was losing], has a certain symmetry to it.
I’m gone for awhile, so
HAPPY THANKSGIVING!
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Happy Thanksgiving to you too, Mark.
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We as a country deserve better phony promises.
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Phony promises you can believe in!
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Happy Thanksgiving, too Mark
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Every time I voted in the East Village, the voting machine was “broken” and people wrote their votes on a piece of paper and put it in a box that anyone could open.
I knew damn well, my vote against Hillary for Senate was thrown away..
I also am not buying all of these votes emerging in California.
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It’s manipulative women all the way down!
https://www.yahoo.com/news/female-monkeys-wile-rally-troops-002147976.html
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I am curious whether these are actual female monkeys or male monkeys that identify as female.
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Heh
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Duh. 🙂
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Sigh. I wish it were true.
http://www.dailykos.com/stories/2016/11/22/1602966/-Trump-s-assault-on-federal-jobs-begins-freeze-hiring-change-pensions-reduce-job-protection
But luckily, a bunch said they’d quit if Trump won so self-deport…, er, attrition!
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Happy Thanksgiving everyone. Go Steelers!
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Never gets old:
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That is hilarious. And new to me
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Just stopping by to wish you all a very happy and safe Thanksgiving! I have much to be thankful for this year so I’m in a very reflective and appreciative mood. One thing I am thankful for is that you’re all still here doing your thing and I can drop by anytime and catch up with y’all!
We had a big extended family Thanksgiving last Saturday as our CO daughter and new husband were here to run a 5K Turkey Trot with me. Today it’s just our oldest daughter, her husband and his mother and a family friend. Looking forward to a quiet day!
Have a great one and don’t eat too much pie!
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Looks like Ben Carson will end HUD’s jihad against Westchester County:
http://www.washingtontimes.com/news/2015/jul/23/ben-carson-obamas-housing-rules-try-to-accomplish-/
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Well, he took credit for Ford. If I was, say, a large manufacture, I might start making loud noises about onerous regulations and more business friendly environments overseas.
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Lots of pissy liberals commenting about that… I made a few jokes about how it never occurred to the 5-dimensional chess player…
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A/C units! Those contribute to climate change!
/insufferable relative
Happy thanksgiving all
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My father was a VP at Carrier back in the day. He worked here for Bryant, Day & Night & Payne and then was transferred to Indiana and Carrier in the early 70’s and worked there until he retired in the late 80’s. It was a great company!
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lms:
My father worked for Carrier too, in Syracuse, way back in the late ’60s early ’70s. He worked in what was at the time a presumably very primative IT department. We always give him a hard time because he eventually got into sales and subsequently quit Carrier, and was basically a travelling salesman for various companies for the rest of his life. We tease him that he was on the ground floor of the technology boom, and decided it was a passing fad so he got out.
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Just saw this……so interesting. My dad accused me of missing the IT boom too, but then he was ahead of his time!
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The grief over at the PL over the death of Fidel must be amazing.
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I’m sure Obama is pleased to have been able to meet the great man before he kicked the bucket.
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The blogosphere of the right is all aflutter over Obama’s anodyne and deliberately opaque comments on the death of Castro.
While my initial reaction was to condemn Obama for this obvious whitewash of Castro’s history, I decided to look for how previous presidents have officially responded to the deaths of similar, high profile tyrants. I couldn’t find any official comments from Eisenhower on the death of Stalin, nor could I find anything from Johnson upon the death of Ho Chi Minh. But I did find official comments from Ford on the death of Mao. They sound remarkably similar to Obama’s on Castro.
Personally I would prefer that, if they aren’t going to say anything about the fundamentally evil nature of the regimes these people ran, they shouldn’t say anything at all. But perhaps these vague, non-judgmental statements are just the routine stuff of diplomacy. And we can at least take solace in the fact that our president isn’t Justin Trudeau of Canada:
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The anodyne is an attempt to reach out to the Cuban people, at a time when change might be in the air.
The Canadian response is fawning and makes me want to retch. The guy was a mass murderer.
Scott, I predicted Fidel’s turn in my HS senior thesis in 1960 – “Communism in Latin America”.
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mark:
The anodyne is an attempt to reach out to the Cuban people, at a time when change might be in the air.
Perhaps, but frankly if I were one of the many Cubans suffering under Castro’s boot heel, it wouldn’t seem like much of an attempt to reach out to me.
Scott, I predicted Fidel’s turn in my HS senior thesis in 1960 – “Communism in Latin America”.
Was that a difficult thing to predict? I know that Castro himself denied being a communist, but I thought it was still widely recognized where his political ideology lay. Is that not right?
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It was predicted by the sources for my paper. But not by the mass media.
You know that he tried out with the Yankees, don’t you?
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That’s a myth apparently.
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Absolute myth.
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McWing:
That’s a myth apparently.
WaPo agrees with you.
https://www.washingtonpost.com/news/early-lead/wp/2014/12/17/just-a-reminder-that-cubas-fidel-castro-never-tried-out-for-the-yankees-or-senators/
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Mark:
You know that he tried out with the Yankees, don’t you?
I do. If only he was a little bit better….
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@markinaustin:
Forgiveness of mass murder on the part of Communist dictators has always been the process for the dedicated left and even many of the more mainstream liberals.
What I don’t get is the forgiveness of his very active persecution of the LBGTQ community. Like camps, prison, torture and execution kind of persecution. Forgiving that for self-reported elevated literacy rates and crappy universal healthcare should be a much bigger ask.
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“But perhaps these vague, non-judgmental statements are just the routine stuff of diplomacy.”
Yep, it’s this. And of course Trump had to tweet over it.
Going forward, I don’t think you’ll have to worry about the problems of overly anodyne diplomatic comments coming from the Trump administration.
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jnc:
Going forward, I don’t think you’ll have to worry about the problems of overly anodyne diplomatic comments coming from the Trump administration.
It’s gong to be entertaining, that’s for sure.
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Trump’s pretty clever in this exchange, it’s been promoted 180 degrees from what I think actually happened.
Freidman sounds utterly hysterical in it, like some emotional broad. Jeez dude, get a fucking grip.
http://www.newsbusters.org/blogs/nb/tim-graham/2016/11/25/sore-spot-trump-raised-climategate-e-mails-liberal-activists-ny-times
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what are you referring to?
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Sorry, this.
http://www.newsbusters.org/blogs/nb/tim-graham/2016/11/25/sore-spot-trump-raised-climategate-e-mails-liberal-activists-ny-times
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Whatever your position on climate change, this assertion is clearly counter-factual. It’s just not true, it’s demonstrably not true. It’s an amazing bubble that some of these so-called “news people” live in.
These are best and brightest. “We’ve never had storms like these.”
Yes. Yes we have.
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Their earnestness (and those of many of the Gaia weepers) is bizarre to me. I wouldn’t be surprised to find that the NYT building has a three sand bag high barrier surrounding it, to hold back the inevitable and immediate rise in oceans.
Any. Minute. Now.
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I expect they must have emergency packs squirreled away. Bottled water, MREs, gold, etc. The sort of things those expect the apocalypse typically keep in their basements, although due to the risk of flooding I expect they keep their post-apocalypse supplies on higher ground.
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Scott Adams:
While Adams was clearly wrong about Trump winning in a landslide (and I think primarily for the reason I anticipated he would be wrong about a Trump victory: the persuasion skills he talked about just don’t work when you’re asking people to abandon an ideological self-image that they believes makes them more moral and superior than others) . . . I agree with this prediction completely. For the same reason. Facts and reality also aren’t persuasive when it comes to making people abandon positions very important to their self-image.
And I think he’s right that it will be beyond anything we’ve previously seen. In my opinion, critics of Obama often filtered out where he was doing a decent job, or legitimately attempting to reach across the aisle, or maintaining a Bush-lite foreign policy, so as to create an image of him, for themselves and fellow travelers, that made him the worst president ever in the history of everything.
Bush experienced the same thing. The reportage on Bush and stem cell research, just to cite one example, was 180° from what was actually happening. To this day, folks on the left (uniformly, in my experience) savage his SS reform plan (the best thing he had to offer, IMHO) with a completely fictional take on it. The “Mission Accomplished” banner has become the stuff of legend, of course, as an example of presidential hubris, but the backstory is very different. And I could go on. Everywhere Bush defied expectations, his critics either didn’t see it or spun it into him somehow conforming to their expectations.
I expect Trump will defy expectations to a degree previously unknown to both the MSM and the opinion-press, both left and right in some cases. The cognitive dissonance will be truly epic, and I’m expect a lot of members of the press and sometimes entire press organs to self-combust in their efforts to force what Trump is actually doing and saying to conform to their narrative.
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Someday R’s will wake up to the racism cudgel and stop giving a shit.
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