Market Snapshot July 9, 2018

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Good Monday A.M.,

 

Bonds are giving back some last week’s gains as concerns over a trade war with China have softened (although will get ramped up again if China does not agree to stop stealing intellectual property) and news from the UK that Brexit is not a done deal. The 10-yr is at 2.85% and Mortgage Bonds are -7bps on the day. Not much else out there to drive rates today. We will have some inflation data towards the end of the week with the PPI on Thursday and CPI on Friday but for now, there is not much going on. Talks with North Korea regarding denuclearization have stalled so I would expect some louder rhetoric from Mr. Trump in the coming weeks.

 

There was a great piece in the WSJ this a.m. on how the American Dream no longer includes owning a home. Here is the link, but you can get the gist from the following. “Financiers who loaded up on homes after the housing bust for pennies on the dollar are buying yet more—despite home prices in many markets being at all-time highs. Big rental-home investors have increased their home buying for the first time since 2013.Their wager: high prices, higher mortgage rates, and skimpy inventory are making home ownership harder. Well-to-do families who might have bought a single-family home in another era are willing to rent a house now, especially if it means access to a good school system.

 

Make today great!