Market Snapshot February 5, 2019

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Good Tuesday A.M.,

 

Not much data to digest today. The big ticket item will be the State of the Union Speech at 9 p.m. Eastern. We will see how markets react but with the standoff in Washington, I don’t think markets are going to see any path away from the holding pattern they seem to be in. The sentiment has changed though. Where improvement in stocks would typically mean a worsening in bond rates, that has not been the case of late. Stocks improving have pulled bonds along for the ride courtesy of Mr. Powell’s remarks last week. Low Fed Fund Rate is the rising tide that can lift all boats (until that tide of course crosses over the levies). Equities are up today and bonds are as well. The 10-yr is back to 2.69% and mortgage bonds +8bps. Maybe hold out to see if we get a reprice for the better today and if so, it would be a good idea to lock. If no reprice, I would likely recommend locking at the end of the day anyway. With no firm direction, there is more to lose than to gain.

 

A couple of quick bullet points for you..

 

  • Over 1/3 of homes on the market have had a price decrease with average decrease of 5% based on various reports.
  • 5% increase in home values over 12 months based on variety of reports including NAR, Case Shiller and MBA.
  • Zillow report shared home buyers earn more than homeowners and that 38% of home buyers make more than 100k.yr
  • Redfin shared that 25% of online shoppers are relocating (some marketing insights here).

 

Make today great!