Morning Report: Bank of America reports a big drop in volume

Vital Statistics:

  Last Change
S&P futures 3439 -41.6
Oil (WTI) 39.82 0.79
10 year government bond yield   0.70%
30 year fixed rate mortgage   2.91%

Stocks are lower this morning after it looks both parties are throwing in the towel on further stimulus. Bonds and MBS are up.

Initial Jobless Claims rose to 899,000 last week as more and more small businesses succumb to social distancing.

While restaurants and bars are struggling, housing continues to be the bright spot in the US economy. The MBA just reported that mortgage applications for new homes are up 38% YOY. “The strong year-over-year results for non-seasonally adjusted new home sales applications – up 38 percent – and estimated home sales – up 20 percent – are indicative of the fundamental strength seen in the housing market since the spring,” said Joel Kan, MBA Associate Vice President of Economic and Industry Forecasting. “Demand for newly built homes is strong, as many buyers appear to seek more space for work, in-home schooling, and leisure.”

Wells announced that mortgage origination volume increased 5% from Q2 to a total of $62 billion, while Bank of America reported a 44% decrease in originations. Surprising to see a major bank pull back during one of the best years the industry has ever seen.

Rents have been falling, although the decline moderated in September. There have been fears that apartment landlords have been buying tenants by cutting rent. It looks like that might be going away.

14 Responses

  1. Vox goes full Vox:

    “It’s time to end presidential debates — forever

    At least in the general election, they’re a vector for misinformation and don’t seem to meaningfully inform voters.

    By Dylan Matthews
    Oct 15, 2020, 12:00pm EDT”

    They never seem to follow their arguments to the logical end point. If they really believe the stuff they say about getting rid of debates and restricting speech, then those are also arguments against democracy in the first place.


  2. Should Trump get reelected, he should put Chris Christie in charge of the Coronavirus task force:


Be kind, show respect, and all will be right with the world.

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