Good Tuesday AM from your Hometown Lender,

The data today was on the weaker side but nonetheless, a nonevent.

Building starts and permits both came in below expectations. Doesn’t seem like the homebuilders are moved by the message that the US is 5mm homes short. I don’t blame them. They can’t be expected to build when absorption is slowing, and costs are increasing. There is a substantial difference between the country needing the homes and consumers buying them.

Rates sheets this morning are likely to be better than yesterday and reprice risk on the day is moderate.

Mortgage bonds improved through the day yesterday, which is what you see reflected on rate sheets. This morning saw all bonds improve on a flight to safety after Russian President Vladimir Putin updated Russia’s nuclear doctrine to consider using nuclear weapons if it was subject to a conventional missile assault supported by a nuclear power. This is a direct response to President Biden’s decision to allow Ukraine to fire American made long-range missiles into Russia (which they did, yesterday). This is how a cold war becomes an actual war.

I have been worried about what the excessive credit card debt means to the country.

Yes, I still see it as a huge problem and yes, there is more debt now than ever before but, the WSJ shared that On an inflation-adjusted basis, total household debt remains more than a trillion dollars below the record high hit at the end of 2008, according to figures calculated by WalletHub. With population growth factored in, it is even relatively lower. Credit-card debt for the average household, for example, is almost 13% off its peak level. Maybe by this metric, we are not on the cusp of a meltdown (although I think we are close).

Stay safe and first, make today great!!!