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24th November, 25
Lowest Yields in Almost 4 Weeks Despite Ongoing Stock Market Recovery
Lowest Yields in Almost 4 Weeks Despite Ongoing Stock Market Recovery There's no question that stock prices and bond yields have had more than the normal amount of correlation recently. While that created some risk of a bond market weakness in the event of a stock market correction, those fears are proving unfounded over the past 2 trading days. Granted, stocks haven't surged, but they did move back to the highest levels in a week on Monday. But bonds didn't follow. In fact, after a microscopically stronger start, yields continued to fall gradually throughout the session, ultimately closing at
Lowest Yields in Almost 4 Weeks Despite Ongoing Stock Market Recovery
Lowest Yields in Almost 4 Weeks Despite Ongoing Stock Market Recovery There's no question that stock prices and bond yields have had more than the normal amount of correlation recently. While that created some risk of a bond market weakness in the event of a stock market correction, those fears are proving unfounded over the past 2 trading days. Granted, stocks haven't surged, but they did move back to the highest levels in a week on Monday. But bonds didn't follow. In fact, after a microscopically stronger start, yields continued to fall gradually throughout the session, ultimately closing at
24th November, 25
Mortgage Rates Slightly Lower to Start Holiday-Shortened Week
Thanksgiving weeks can be weird for mortgage rates. This has to do with the fact that rates are dictated by the bond market and the bond market depends on real live people who can actually be out of the office on holiday weeks. The lighter levels of participation can increase volatility and cause random movement for no apparent reason. We'll cross that bridge if we come to it. As far as Monday is concerned, there's no drama or weirdness to report. Bonds improved modestly throughout the day, thus allowing mortgage rates to move modestly lower. Because rates were closer to the higher end
Mortgage Rates Slightly Lower to Start Holiday-Shortened Week
Thanksgiving weeks can be weird for mortgage rates. This has to do with the fact that rates are dictated by the bond market and the bond market depends on real live people who can actually be out of the office on holiday weeks. The lighter levels of participation can increase volatility and cause random movement for no apparent reason. We'll cross that bridge if we come to it. As far as Monday is concerned, there's no drama or weirdness to report. Bonds improved modestly throughout the day, thus allowing mortgage rates to move modestly lower. Because rates were closer to the higher end
24th November, 25
HELOC, CES, Automation, Climate Analysis Products; Webcasts and Training This Week
“Remember to bring up politics at Thanksgiving to save some money on Christmas presents.” “What do tornadoes and Tennessee divorces have in common? Someone's going to lose a mobile home.” (My father’s family is from there, so I can use that one.) Mobile homes are one segment of the manufactured home biz, and at the other end of the scale there are some grand houses out there that are made in factories… It makes so much sense. Many in the United States believe that manufactured housing, and planned developments, are the way to go, and with good reason. But elsewhere, not so much.
HELOC, CES, Automation, Climate Analysis Products; Webcasts and Training This Week
“Remember to bring up politics at Thanksgiving to save some money on Christmas presents.” “What do tornadoes and Tennessee divorces have in common? Someone's going to lose a mobile home.” (My father’s family is from there, so I can use that one.) Mobile homes are one segment of the manufactured home biz, and at the other end of the scale there are some grand houses out there that are made in factories… It makes so much sense. Many in the United States believe that manufactured housing, and planned developments, are the way to go, and with good reason. But elsewhere, not so much.
24th November, 25
Bonds Inch to Best Levels in Over 3 Weeks
It's a data-free Monday on a holiday-shortened week and there aren't any high-impact headlines or massive stock swings to spark any serious bond market movement. Nonetheless, bonds have found a reason to rally ever-so-slightly this morning. Because yields were already at the low end of November's range on Friday afternoon, the result is that today's yields are the lowest we've seen since the late October Fed day. The next 2 days have quite a bit of data in addition to running a traditional risk of higher volatility due to holiday week trading conditions. In the bigger picture, we're likely
Bonds Inch to Best Levels in Over 3 Weeks
It's a data-free Monday on a holiday-shortened week and there aren't any high-impact headlines or massive stock swings to spark any serious bond market movement. Nonetheless, bonds have found a reason to rally ever-so-slightly this morning. Because yields were already at the low end of November's range on Friday afternoon, the result is that today's yields are the lowest we've seen since the late October Fed day. The next 2 days have quite a bit of data in addition to running a traditional risk of higher volatility due to holiday week trading conditions. In the bigger picture, we're likely
21st November, 25
Bonds Hold Gains Despite Ongoing Recovery in Stocks
Bonds Hold Gains Despite Ongoing Recovery in Stocks The stock market factored into the bond market's performance on Friday. In pre-market trading stocks managed a big bounce after NY Fed's Williams spoke favorably about December's rate cut potential. Bonds benefited from that comment initially, but the stock rally quickly forced bonds to find a floor for the day. From then on, stocks continued putting upward pressure on rates, but the net effect was that bonds simply held sideways whereas they might have otherwise continued to rally. Econ Data / Events Non Farm Payrolls (Sep) 119K vs 50K
Bonds Hold Gains Despite Ongoing Recovery in Stocks
Bonds Hold Gains Despite Ongoing Recovery in Stocks The stock market factored into the bond market's performance on Friday. In pre-market trading stocks managed a big bounce after NY Fed's Williams spoke favorably about December's rate cut potential. Bonds benefited from that comment initially, but the stock rally quickly forced bonds to find a floor for the day. From then on, stocks continued putting upward pressure on rates, but the net effect was that bonds simply held sideways whereas they might have otherwise continued to rally. Econ Data / Events Non Farm Payrolls (Sep) 119K vs 50K
21st November, 25
Mortgage Rates Nudge Lower to Remain In The Same Old Range
Recent stock market losses have gotten a lot attention in the news recently. While there's no reliable correlation between stocks and interest rates, when stock losses are as big as they have been recently, it increases the tendency for rates to move in the same direction. That was definitely the case today. Bonds (which dictate rates) improved overnight as stocks sank further. But as early as 7am, a reversal began to take shape. The catalyst was a comment from NY Fed Pres Williams who said he sees a good case for a rate cut at the upcoming December meeting. On one hand, improved rate
Mortgage Rates Nudge Lower to Remain In The Same Old Range
Recent stock market losses have gotten a lot attention in the news recently. While there's no reliable correlation between stocks and interest rates, when stock losses are as big as they have been recently, it increases the tendency for rates to move in the same direction. That was definitely the case today. Bonds (which dictate rates) improved overnight as stocks sank further. But as early as 7am, a reversal began to take shape. The catalyst was a comment from NY Fed Pres Williams who said he sees a good case for a rate cut at the upcoming December meeting. On one hand, improved rate
21st November, 25
Small Steps Higher, Same Stubbornly Low Territory for Existing Home Sales
Existing-home sales posted another modest gain in October, rising 1.2% to a seasonally adjusted annual rate of 4.10 million , according to the National Association of Realtors (NAR). Sales are now 1.7% higher than a year ago as lower mortgage rates helped offset the drag from the government shutdown. Demand continues to run stronger than it did through most of 2023 and early 2024, even if the overall pace remains historically subdued. “Home sales increased in October even with the government shutdown due to homebuyers taking advantage of lower mortgage rates,” said NAR Chief Economist
Small Steps Higher, Same Stubbornly Low Territory for Existing Home Sales
Existing-home sales posted another modest gain in October, rising 1.2% to a seasonally adjusted annual rate of 4.10 million , according to the National Association of Realtors (NAR). Sales are now 1.7% higher than a year ago as lower mortgage rates helped offset the drag from the government shutdown. Demand continues to run stronger than it did through most of 2023 and early 2024, even if the overall pace remains historically subdued. “Home sales increased in October even with the government shutdown due to homebuyers taking advantage of lower mortgage rates,” said NAR Chief Economist
21st November, 25
Rising Rates Pull Applications Lower, but Year-Over-Year Gains Hold Firm
Mortgage applications moved lower last week as rates continued drifting higher for a third straight week. MBA’s Weekly Applications Survey for the week ending November 14 showed a 5.2% drop in total volume on a seasonally adjusted basis and a 7% decline unadjusted. The Refinance Index fell 7% from the previous week but is still running 125% above last year’s levels. Even with the pullback, refi activity remains firmly in recovery territory compared to the past two years. That said, the recent rate bump pushed the average refinance loan size to its lowest reading since August, underscoring
Rising Rates Pull Applications Lower, but Year-Over-Year Gains Hold Firm
Mortgage applications moved lower last week as rates continued drifting higher for a third straight week. MBA’s Weekly Applications Survey for the week ending November 14 showed a 5.2% drop in total volume on a seasonally adjusted basis and a 7% decline unadjusted. The Refinance Index fell 7% from the previous week but is still running 125% above last year’s levels. Even with the pullback, refi activity remains firmly in recovery territory compared to the past two years. That said, the recent rate bump pushed the average refinance loan size to its lowest reading since August, underscoring
21st November, 25
Builders Slash Prices at Record Pace Despite Slight Sentiment Improvement
Builder confidence levels are still kicking the same sad little can down the road, just with slightly more enthusiasm. The November National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) inched up to 38 from 37 in October, marking the 19th straight month below the 50 line that separates expansion from contraction. Looking at the underlying components, we find the same deck of cards shuffled in a slightly different order. The component for current sales conditions improved two points to 41 and the buyer traffic index ticked up one point to 26—still firmly in “
Builders Slash Prices at Record Pace Despite Slight Sentiment Improvement
Builder confidence levels are still kicking the same sad little can down the road, just with slightly more enthusiasm. The November National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) inched up to 38 from 37 in October, marking the 19th straight month below the 50 line that separates expansion from contraction. Looking at the underlying components, we find the same deck of cards shuffled in a slightly different order. The component for current sales conditions improved two points to 41 and the buyer traffic index ticked up one point to 26—still firmly in “
21st November, 25
Hedging, Broker Database, Distributed Meeting AI Tools; Experian on Renter's Thoughts; Director Pulte a Liability?
“Six cows were smoking joints and playing poker. That's right: The steaks were pretty high.” The steaks, uh, stakes, are high when changes to our housing finance system occur, or actions are taken that are negatively impact borrowers or reputations. In a typical organization, the CEO reports to the board of directors. The FHFA oversees Freddie Mac and Fannie Mae, and with FHFA Director Bill Pulte, he pretty much appointed the boards of Freddie and Fannie but they are ultimately responsible for his actions and statements. So is President Trump who nominated him to his post. The Department
Hedging, Broker Database, Distributed Meeting AI Tools; Experian on Renter's Thoughts; Director Pulte a Liability?
“Six cows were smoking joints and playing poker. That's right: The steaks were pretty high.” The steaks, uh, stakes, are high when changes to our housing finance system occur, or actions are taken that are negatively impact borrowers or reputations. In a typical organization, the CEO reports to the board of directors. The FHFA oversees Freddie Mac and Fannie Mae, and with FHFA Director Bill Pulte, he pretty much appointed the boards of Freddie and Fannie but they are ultimately responsible for his actions and statements. So is President Trump who nominated him to his post. The Department