Good Tuesday PM from your Hometown Lender,
A little bit of a late update…
But it does allow for a more complete perspective on the day’s movement. We did have two important data releases today. The Jolts available report which increased for the first time in three months and Consumer Confidence which was stronger than expect but backward revisions were lower, and the present situations index was weaker. Still in the face of a bit stronger data which clearly gives the Fed some extra time if they want it, bonds have held up well today.
The 10yr started the day at 4.19% and is currently at 4.15%.
Those 4bps don’t mean a whole lot other than if we close here or below and we make it through tomorrow’s FOMC decision, rates should improve further. That’s a very uncertain path and with the market already betting on a dovish Fed statement, if anything more neutral or hawkish is said, we could see rates slingshot back up. It is not a great idea to float into a Fed meeting. Additionally, tomorrow, and before we hear from the Fed which allows them to react to the morning’s data, we hear from the Bank of Japan (likely to raise rates), ADP for their payrolls report, and a few other less important metrics.
How about that in more than 200 U.S. cities…
The typical starter home for sale is worth $1 million or higher. The cost of homes has skyrocketed during the pandemic, due to housing shortage, heightened demand and increasing inflation. A new report from Zillow found that the typical starter home in some markets is way above what the average American afford
The median U.S. home sale price hit a record high in July, according to Redfin, keeping more people, especially younger Americans, in rentals. And now there’s a new generation leading the rental pack, according to a report by the Joint Center for Housing Studies of Harvard University: Generation Z. More Than Half of American Renters Who Want to Buy a Home Fear They’ll Never Afford One
Olympic Medal Watch, the US leads all countries with 26 total medals although with 4 gold, we are in 6th place.
Stay safe and make today great!
