Morning Report: Bidding wars continue

Vital Statistics:


Last Change
S&P futures 3346 3.6
Oil (WTI) 41.83 -0.52
10 year government bond yield 0.55%
30 year fixed rate mortgage 2.85%


Stocks are flattish this morning on no real news. Bonds and MBS are flat.


The week after the jobs report is usually data-light and this week is no exception. We will get inflation data and productivity, but neither should be market-moving. We will also have Fed-Speak on Monday, Tuesday and Wednesday.


PennyMac reported strong second quarter earnings, with EPS rising from $0.92 to $4.39 per share. Production was $37.6 billion and the company earned $538 million in pretax income from origination, or about 143 basis points. Servicing was a drag however, losing $62 million.


79% of renters had paid their August rent by the 6th, according to the National Multifamily Housing Council. “Over the past few months apartment residents have largely been able to meet their housing obligations. In no small part, this is due to the enhanced unemployment benefits enacted under the CARES Act and significant steps by apartment owners and operators to help their residents. These unemployment benefits that have proven so important to so many households have now lapsed, meaning greater financial distress for millions and the potential worsening of America’s housing affordability crisis,” said David Schwartz, NMHC Chair, and CEO and Chairman of Chicago-based Waterton.


Bidding wars continue, according to Redfin. Over half of their offers were competitive. “Bidding wars may slow down if interest rates tick up again, which could happen if we get good news about a coronavirus vaccine or more clarity around the outcome of the upcoming U.S. presidential election,” said Redfin chief economist Daryl Fairweather. “At the same time, we may still be in the early innings of the pandemic migration wave. If coronavirus cases continue to climb, more employers will likely make flexible remote work policies standard procedure, which will drive further migration out of large, expensive cities. As a result, we may see bidding wars gain more traction in suburban areas and small towns.”



18 Responses

  1. Scott, Taibbi goes all in. You should read his most recent stuff vis-a-vis Flynn:


    • “Trump’s Latest Executive Orders Are a Political Stunt”

      True, but I believe Cassidy and Waldman, et al are missing the point.

      This is part of the fight over fixing blame on the lack of action in the public’s mind. By doing this, he’s shifted the onus back to Congress for being deadlocked. If the general chatter I overhead at bars this weekend is any indication, Trump’s getting points for “doing something” from those who don’t pay close attention, even from those who don’t necessarily support him (but aren’t hard core Democrats either).

      Politically, I think it’s the smartest thing he’s done in a while. His natural instincts require a foil to play off against and Biden hasn’t been giving him a lot of openings so far. Congress, with it’s natural unpopularity is a much better target.


  2. Good read:


  3. I’m not a big HRC fan, but this is great.

    Note that the original tweet said:

    “It’s hard to fathom, but it has been 36 years since a man and a woman ran on a Democratic Party ticket.”


    • jnc:

      I’m not a big HRC fan, but this is great.

      Pretty funny. From my recollection, Dowd was never a big HRC fan either.


    • No one could fake a foul like Bill Lambeer. If I recall correctly he won Oscars on 4 different occasions for best actor.


      • danny ainge


        • Ainge was a great flopper on D, but I don’t remember him leaning in or kicking out on jump shots to initiate contact [with the refs buying that crap, as well]. They did buy the flops on Ainge, and they did on Ginobili, and they do on Harden. But Harden has gone so far beyond clever flopping.


        • Sounds like Harden is moving from “Clever Flopping” to “Flamboyant Flouncing”.


      • What Laimbeer did even “better” was put a fist into the stomach of a guy driving on him, without getting caught. If Laimbeer-Mahorn-Dumars were a tandem in today’s NBA they would be given a lifetime ban or worse, prosecuted for battery and mayhem. Salley, Edwards, and Isaiah were no angels, either, and it is tough to imagine a team where the guy playing clean was Dennis Rodman.


        • My favorite karma moment for Bill Laimbeer. Amazing to think that Parrish didn’t get booted from the game, but Laimbeer deserved that and more.


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