Vital Statistics:
Last | Change | |
S&P futures | 2648.75 | -3.5 |
Eurostoxx index | 348.48 | -1.12 |
Oil (WTI) | 50.5 | -0.64 |
10 year government bond yield | 2.90% | |
30 year fixed rate mortgage | 4.72% |
Stocks are lower this morning on no real news. Bonds and MBS are flat.
The consumer price index was flat month-over-month in November, and was up 2.2% on a YOY basis. Ex-food and energy, it was up 0.2% MOM and 2.2% YOY. Inflation remains under control, which gives the Fed an excuse to stand pat next week. The Fed Funds futures are handicapping an 80% chance of another 25 basis point hike.
Mortgage applications increased 1.6% last week as both purchases and refis rose. “Mortgage rates fell across the board last week, driven by a similar slide in Treasuries. Trade fears dominated investors’ concerns, and this was amplified by data released by the U.S. Commerce Department showing a widening trade deficit,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “The 30-year fixed mortgage rate decreased 12 basis points over the week back below 5 percent, representing the largest single week drop since 2017.” Refis are still flat on their back.
While the real estate market is cooling overall, the hottest markets like Seattle and Denver are seeing big drops in activity. Denver sales are down 24% and inventory is up 50%. In Seattle, sales are down 20% while inventory is up 135%. I wonder how much of this is Chinese money getting cold feet about the US (and their own) real estate markets.
Donald Trump has officially nominated Mark Calabria to run FHFA when Mel Watt’s term expires in January. The NAHB and the MBA support the nomination, while affordable housing advocates are unhappy. In the past, he has been critical of low downpayment loans, which raises the question of what will happen with Fannie and Freddie’s low downpayment / low FICO programs. He has also been skeptical of the GSE’s affordable housing mandates. He is also on record being critical of securitization itself, regarding it as too pro-cyclical, which means there is too much credit in good times, and when the housing market turns down, it disappears. Finally, he has called for ending the 30 year fixed rate mortgage, which is almost an American birthright and would be impossible to get without the government subsidies.
Filed under: Economy, Morning Report |
What’s your opinion of Calabria?
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‘N’ every gimmick hungry yob digging gold from rock ‘n’ roll
Grabs the mike to tell us he’ll die before he’s sold
But I believe in this and it’s been tested by research
He who fucks nuns will later join the church
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tho there has been a lot of scaremongering in the liberal media that the 30 year fixed rate mortgage will go away….
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My in-laws were born there. Some pretty beaches and hills. Good food.I can gain Italian green card status if Rosanne and I go to Calabria and get married by a magistrate.
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Sigh. Headline:
vs reality
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I’m really surprised by the headline.
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I assume you are being facetious.
Vox is a little better in that the second line conveys the actual truth.
“Trump is pushing Vietnam to accept deportees who have lived in the US for over 20 years
The shift would affect thousands of immigrants who’ve been ordered deported — generally for committing crimes — but not legal immigrants or citizens.
By Dara Lind
Dec 12, 2018, 6:10pm EST”
https://www.vox.com/2018/12/12/18138323/trump-vietnamese-deport-refugees
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I know, right? You think they’d do better.
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orange man bad
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RIP, Weekly Standard.
I don’t know if the online version is dissolving as well, so I am keeping our link to it.
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Yeah ya fucking geeks!
https://www.breitbart.com/tech/2018/04/17/stanford-professor-dungeons-and-dragons-perpetuates-systems-of-white-male-privilege/
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It is amazing there are basically no standards to get published anymore…
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There is nothing they won’t pollute and taint in their drive for clickbait. And no group they won’t alienate.
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