Market Snapshot October 11, 2019

pink patio

Good Morning on this Fantastic Friday,

 

The data is taking a back seat to Twitter yet again. Mr. Trump tweeting the trade talks are going very well was a red bull to the equity markets and train wreck for bonds. I hope that calmer heads will prevail but there are a lot of opinions out there right now. The 10-yr, which was in the low 1.50’s on Monday, is now at 1.74%. That’s almost a .25% change in rate. Mortgage bonds, which are down 30bps on top of yesterday’s 30bps (and half of that on Wednesday), haven’t given up as much but this week has been U-G-L-Y for bonds.

 

This is the time to be patient if at all possible. We are at the top end of the range (1.75% on the 10-yr) which should kick in some support for bonds. Going into the holiday weekend, the best we can hope for is it doesn’t get any worse from here. We can attack it again on Tuesday.

 

Here’s a great table for all of the doom and gloomers predicting real estate price deflation. Affordability in many metros (well, at least those not in California) is strong. Keep in mind that the national median family income is $65,910 and Nevada for example is $58,003. Both are above the income levels needed to purchase the median priced home.

(Click to enlarge.)

 

aaa data list

Enjoy the weekend and first, make today great!