Good morning on this best day of the week from your Hometown Lender,

No economic news today.

We did have a 20-yr bond auction which did not go well and has taken the 10-yr note yield to 4.58% and mortgage bonds down by 39bps. The concern over exploding federal debt is front and center with the tax bill in front of Congress. If you would like a chart on why bonds are not in favor, here are a couple of charts. You don’t need to be a chartist to see how much money is being lost by banks holding Treasuries and Mortgage Bonds. I think the Treasury and Fed are gong to have to intervene here soon.

And some good news, with many on edge financially due to the state of the nation’s economy, a new poll from Realtor.com has found that U.S. homebuyers are bracing for a potential recession, but is there a silver lining? The survey found that 63.4% of those polled expect a recession within the next 12 months, marking one of the highest levels of concern since 2019, and nearly 30% indicated that a recession would make them somewhat more likely to purchase a home. This is nearly twice as large as the share who report they’d be less likely to buy a home in a recession (15.8%).

And while recessionary fears have heightened, 29.8% of potential homebuyers remain motivated, and indicate they could be more likely to buy in a downturn—with the potential for lower mortgage rates and less competition amid an economic slowdown as key motivators. Of those polled, 54.4% claim a recession would have no impact on their decision to purchase a home—a sign that many will be driven more by life circumstances than macroeconomic shifts. Only 15.8% of respondents reported they would be less likely to buy in a recession, reinforcing the idea that the housing market may see continued resilience despite instability in the economic climate.

Stay safe and make today great!