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 | 4,132 | -1.50 |
| Oil (WTI) | 93.77 | -0.01 |
| 10 year government bond yield | 3.09% | |
| 30 year fixed rate mortgage | 5.68% |
Stocks are flattish this morning on no real news. Bonds and MBS are down small.
Mortgage Applications hit a 22-year low last week as purchases declined 1% and refis fell 3%. “Mortgage applications continued to remain at a 22-year low, held down by significantly reduced refinancing demand and weak home purchase activity,” said Joel Kan, MBA Associate Vice President of Economic and Industry Forecasting. “Last week’s purchase results varied, with conventional applications declining 2 percent and government applications increasing 4 percent, which is potentially a sign of more first-time homebuyer activity. The average purchase loan size continued to trend lower, as purchase activity at the high end of the market is weakening.”
Durable Goods orders were flat in July, according to Census. This is further indication that the rate increases of earlier this year are beginning to be felt. Durable Goods shipments rose 0.4%. Slowing orders are an indication of declining demand, which should help alleviate some of the supply chain issues that are driving up prices.
Home prices are beginning to fall. Part of this is due to seasonality (prices generally peak in June), however they have gone up in such a straight line that a correction is probably due. “House prices are rolling over,” says Mark Zandi, chief economist at Moody’s Analytics. “They’re going from straight north to going sideways and, I expect, would be going south in the not too distant future, certainly by this time next year.”
The hottest markets in the Southwest, Southern California, the Mountain states and Florida could be the most vulnerable. Many of these places saw 30% price appreciation over the past year. “These most juiced-up markets … could see 10% to 15% declines, and that’s assuming no recession,” says Moody Analytics’ Zandi. “If we get into a recession, then we’re talking 15%, 20%. I could even see some markets down 25% from their peak.”
FWIW, I think the supply – demand imbalance will prevent a nationwide price decline of any significance. We aren’t going to experience another 2006 – 2010 time period. This is more of a “buyer’s strike” than a “forced selling” event.
Pending Home Sales fell 8.6% in July to an index level of 91 (where 100 – the 2001 market). “Contract signings to buy a home will keep tumbling down as long as mortgage rates keep climbing, as has happened this year to date,” said NAR Chief Economist Lawrence Yun. “There are indications that mortgage rates may be topping or very close to a cyclical high in July. If so, pending contracts should also begin to stabilize. Home sales will be down by 13% in 2022, according to our latest projection,” Yun added. “With mortgage rates expected to stabilize near 6% and steady job creation, home sales should start to rise by early 2023.”
Between falling home sales and declining mortgage applications, we are in a housing recession that should probably last until at least the Spring Selling Season next year.
Filed under: Economy |
All Things in Moderation 
“Biden to cancel up to $10,000 in student debt for most borrowers and $20,000 for Pell recipients
The president is also is extending a pause on federal student loan payments through Dec. 31”
https://www.washingtonpost.com/education/2022/08/24/biden-student-loan-cancellation/
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Sure would be nice if he knocked $10,000 off my kid’s tuition bill.
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Seems like it’s going to guarantee that the tuition goes up by at least that amount.
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Which is the whole point of the sliding scale for tuition. Just wealth redistribution.
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Two questions…
1) Where does Biden get the authority to cancel debt?
2) How is this not a clear instance of a politician using public funds to bribe voters?
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I believe it’s the YOLO clause and that authority originates with Obama’s DACA deal.
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“Where does Biden get the authority to cancel debt?”
I’ve seen arguments that it comes from the Higher Education Relief Opportunities for Students (“HEROES”) Act of 2003 or the Higher Education Act of 1965 (“HEA”)
See also:
https://thecollegeinvestor.com/35892/is-student-loan-forgiveness-by-executive-order-legal/
https://www.virginialawreview.org/articles/standing-and-student-loan-cancellation/
https://www.washingtonpost.com/opinions/2022/05/04/biden-no-power-to-forgive-student-loans/
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& this:
Click to access secretarys-legal-authority-for-debt-cancellation.pdf
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1. He has no such authority that I’m aware of.
2. Clearly it is an attempt to bribe voters and also pay off all the debt if the people in the administration and their friends who are making a hair below $125k.
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Amazing
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I’m sure all the guys out there that didn’t go to college, maybe went into the army or went to trade school, that are now working two jobs to keep the lights on … very much in synch with Tribe, very excited to have his privileged students now get some of their debt canceled so their parents don’t have to keep paying some of their other bills.
The elitism of the things they are picking to focus on is outstanding.
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Looks like no tax bill either. Really is free money:
“To be clear, student loan forgiveness won’t trigger a federal tax bill.
The American Rescue Plan of 2021 made student loan forgiveness tax-free through 2025 — and the law covers Biden’s forgiveness too, according to a fact sheet from the White House.
Generally, the IRS sees federal student loan forgiveness as taxable earnings. ”
https://www.cnbc.com/2022/08/24/heres-what-president-bidens-student-loan-forgiveness-means-to-your-taxes.html
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Well, they aren’t going to tax the people in their class! That’s for, you know, people who work a trade or start a business.
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a sop to over-educated and under-employed woke women, the base of the D party.
Women owe something like 2/3 of all student debt. If the percentages were reversed, the media would be throwing a fit.
The college endowments of schools that accept Federal loans should kick in some. They were the ones reaping the subsidies for an inelastic good.
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Brent:
The college endowments of schools that accept Federal loans should kick in some.
Absolutely.
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Lol!
Sorry, I keep forgetting that only Trump is the liar.
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Holy shit!
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Is this just a complete lack of self-awareness, or a deliberate propaganda campaign?
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Pure baiting.
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The first episode of the David Koresh biopic “Waco” actually had a pretty good recreation of the Weaver standoff in the first episode.
https://www.imdb.com/title/tt6040674/
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I was fairly Republican when that occurred but it red-pilled me into an antigovernmental zealot.
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