Brent Nyitray
Fairlington Blade
Let the mutherfuker burn!
jnc4p
Kevin S. Willis
Michigoose
lmsinca
markinaustin
Memetrics
novahockey
quarterback
ScottC
yellojktVital Statistics:
| Last | Change | |
| S&P futures | 4,406 | 6.2 |
| Oil (WTI) | 63.13 | -0.55 |
| 10 year government bond yield | 1.24% | |
| 30 year fixed rate mortgage | 3.05% |
Stocks are flattish this morning on no real news. Bonds and MBS are flat.
United Wholesale is accepting cryptocurrency for mortgage loans. “We’ve evaluated the feasibility, and we’re looking forward to being the first mortgage company in America to accept cryptocurrency to satisfy mortgage payments,” CEO Mat Ishbia said in the company’s second quarter earnings call on Monday. “That’s something that we’ve been working on, and we’re excited that hopefully, in Q3, we can actually execute on that before anyone in the country because we are a leader in technology and innovation.” I am not sure what this buys UWM or a borrower for that matter, but there it is.
Rent prices have soared past pre-pandemic levels, according to Zillow. Rents grew 9.2% YOY in July, the fastest recorded pace since Zillow started tracking these numbers in 2015. When the eviction moratorium ends, many renters are going to face sticker shock when they try and find a new place. Zillow also predicted that home price appreciation will begin to cool off, however keep in mind that almost every index has been predicting that for the past year, and prices keep rising.
The increase in home price appreciation is a concern at the Fed as well, and that is one big reason for scaling back MBS purchases. The Fed probably isn’t worried about a bubble (they just don’t happen that often), but they are worried about affordability, and the impact that its MBS purchases are having on it. The real bubble is in global sovereign debt, not real estate. As they say, generals always fight the last war.
What will MBS tapering do to mortgage rates? Well, during the taper tantrum of 2013, MBS spreads widened to 150 basis points or so. MBS spreads are (very roughly) the difference in yield between a mortgage backed security and its corresponding maturity Treasury. If spreads widen, it could mean that mortgage rates increase even if Treasuries go nowhere.
Note that in 2013, most of the widening took place before the Fed actually started tapering. The spread actually peaked in late summer of 2013, well before the Fed started reducing purchases at the December 2013 FOMC meeting. As they often say in markets, buy the rumor, sell the fact.
My personal view is that the economy is not going to strengthen the way the media and the government is hoping, and Treasury rates will probably work lower. The inflation data will also begin to moderate as commodity shortages abate. This will probably keep a floor on mortgage rates, as I suspect they will probably stay around here even if rates work lower.
Filed under: Economy, Morning Report |
All Things in Moderation 
And of course this won’t make a difference to the media narrative:
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* no evidence
Scant evidence my ass. They don’t even have that.
But the object is to define intimidating Mike Pence into not certifying the election constitutes a coup and a desire to overturn the government. Basically—right wingers protesting is by definition “insurrection” and an attempted coup, and thus domestic terrorism.
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I am sure the AP Style Guide is updating the new narrative as we speak.
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Interesting premise:
“What is Unusual Whales 🐳?
What started out as one Whale’s ambition to expose congressional insider trading has evolved into a (continuously improving!) multifaceted tool that levels the playing field and empowers the retail investor. With Unusual Whales, you’ll find out about big movements as they happen and have the tools to act on it.”
https://docs.unusualwhales.com/features/1-welcome/
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All the stores are reinstituting mask mandates around here.
Fucking Karens and their pusillanimous husbands run the world we live in.
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Same here. Supposed to start yesterday but no one at the gym was masked. I’m assuming it will start up though. I’m about the only one walking around the office unmasked but no one has commented yet because I think they know it’s BS—they are just virtue signaling.
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Uh oh.
https://www.reuters.com/world/us/exclusive-fbi-finds-scant-evidence-us-capitol-attack-was-coordinated-sources-2021-08-20/
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Nah. MSNBC said sure but it was still the worst thing since 9/11 and it was all Trump’s fault so the narrative is still intact.
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Props. Dude’s going for the Texas vote.
I fell bad for all of you that have never been to Buc-ee’s.
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never heard of it.
i did hear that some activists are trying to introduce cauliflower BBQ in TX.
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It is the Mecca of Highway gas stations. You could perform surgery on their bathroom floors. They’re the size of large grocery stores.
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Nothing wrong with cauliflower BBQ. Of course nothing wrong with a rack of ribs either.
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and a gazillion replies from the peanut gallery chastizing him for not putting a mask on.
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Brent – hope you are safe from the storm.
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Thanks Mark, Thinking about just getting out of here, probably won’t have power for a week.
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I agree, completely. Where your wife stops to pee.
https://www.google.com/maps/d/viewer?mid=1jdhzHq0STCt_UXRLaUPT1hwe1TI&ll=31.029881218927134%2C-96.53799964999999&z=7
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Love the first comment, whose avatar says “I got the COVID shot”: “Raise your hand if you think Ron Desantis should be removed from office immediately” with a little raise-hand emoji.
These people think disagreeing with them should be an impeachable offense.
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Twitter is such a cesspool of asshole progressives
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These people think disagreeing with them should be an impeachable offense.
And Pelosi agrees with them, hence the two impeachments.
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The lawless judiciary continues its work destroying the constitution.
https://www.reviewjournal.com/crime/courts/nevada-judge-strikes-down-immigration-law-aimed-at-illegal-re-entry-2423144/
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Destined for SCOTUS I predict.
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Unless the Biden administration plays the game of declining to appeal and defend the law the same way that Obama did.
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McWing:
Destined for SCOTUS I predict.
The case? Or, given the existence of a Biden administration, the judge?
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Lol! Both!
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I never want to hear the left complain when people say they are for open borders.
They are.
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Wrong decision, as I understand it. I could see an unlawful application case based on equal protection, but I do not think this was that case.
Apparently she thought the stats made the case for unlawful application, but I think the USA’s position that geographical proximity to Central America is the reason for the stats being what they are is absolutely compelling, absent some other evidence about illegal re-entrants from other parts of the world being ignored by INS.
—
Here is some bad judging that was simply bad lawyering, but with exactly the procedural result that Roberts correctly abhors:
https://reason.com/volokh/2021/08/20/the-fifth-circuit-made-me-do-it/
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If Biden isn’t fighting it aggressively enough I think it means that he wants the perception that his hands are tied and he gets the benefit of the Trump policy with a minimum of blame.
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By and large I support withdrawing from Afghanistan, but this is a good thread on the potential downside:
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The Chinese can babysit the ME now.
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LOL….13% of D’s would vote for Trump if election were today. Surprisingly, only 12% of “moderates” regret voting for Biden. (If not by now, I shudder to think what it would take!)
https://en-volve.com/2021/08/19/stunning-poll-shows-trump-winning-election-by-landslide-if-held-today-also-shows-1-in-10-democrats-regret-voting-for-biden/
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Might just take reliable polling? But also a lot of voters pay no attention to the day-to-day and have no concept of what’s going on in fp or that Biden is doing anything different or strange.
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Most people who self-describe as moderates simply believe their ultra-leftism is in fact moderate because they don’t support mandatory abortions and sex-change operations for everybody.
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