Good Wednesday AM, the best day of the week,

No data again today.

There are a few Fed Governor speeches and there was a 10 yr treasury auction which went well. The 10yr note is dropping today and is at 4.51%. Mortgage bonds are bouncing on both sides of unchanged which is a little disappointing. Tomorrow we get some unemployment claims information which will move things around a little bit.

Quick pick me up from CNBC (I love positive stories).

Mortgage rates saw the biggest one-week drop in over a year last week, causing the first increase in mortgage demand in a month. Total mortgage application volume rose 2.5% last week, compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) decreased to 7.61% from 7.86%, with points falling to 0.69 from 0.73 (including the origination fee) for loans with a 20% down payment. “Last week’s decrease in rates was driven by the U.S. Treasury’s issuance update, the Fed striking a dovish tone in the November FOMC statement, and data indicating a slower job market,” said Joel Kan, vice president and deputy chief economist at the MBA.

Applications to refinance a home loan increased 2% for the week.

Mortgage rates are pretty close to where they were at this time last year, so there is not a lot of incentive to refinance. Most homeowners refinanced two years ago when rates were hovering near record lows. The vast majority of current homeowners carry mortgages with rates below 4%.

Applications for a mortgage to purchase a home rose 3% for the week.

The decline in interest rates is still not enough to offset sky-high home prices, which are still rising due to the very low supply of houses for sale.

Mortgage rates started the week slightly higher, but this week holds fewer economic events or reports that would influence rates. Last week’s combination of the Federal Reserve keeping interest rates unchanged and a lower-than-expected monthly employment report was the perfect storm for the dramatic move lower in rates.

And here are some snippets from around that are noteworthy.

The piece on people thinking it’s a bad time to buy is fantastic. Think of the opportunities to negotiate with sellers!!!

Why the Fed Shouldn’t Get Credit for the Fall in Inflation

Does the Federal Reserve deserve credit for the decline in inflation? The economic evidence is clear: No, not a lot. On the face of it, inflation plummeted after the Fed, flat-footed at first, finally caught up by imposing a rapid series of rate increases. Dig into what actually happened, and there is no obvious link between the Fed’s action and the slowdown in inflation. Instead, inflation fell mostly because of things the Fed has no control over, as normality returned after the pandemic. The best we can say about the Fed is that it stopped things from getting even worse, James Mackintosh writes.

Right Now Is a Terrible Time to Spend Money…

Prices remain high for much of what we buy, even as inflation has slowed. Stingily saving money, meanwhile, is a more profitable activity than it has been in recent memory. Since the Federal Reserve raised interest rates to a two-decade high, any dollar spent today is a lost opportunity to earn as much as 5% or more in savings accounts, certificates of deposit and bonds. WSJ’s Oyin Adedoyin looks at ways to fight the inevitable temptation to spend more around the holidays.

…But People Are Still Spending Money

A growing share of Americans are falling behind on their credit-card bills as credit-card debt hit a record high. The Federal Reserve Bank of New York’s latest household credit and debt report showed Americans’ cumulative credit-card balances reached a record $1.08 trillion in the third quarter, up $154 billion from a year earlier, the biggest annual increase in records dating to 1999, MarketWatch’s Zoe Han reports.

While the jump in credit-card balances in the third quarter is in line with the overall picture of strong consumer spending, some groups are feeling financial strains as a result, New York Fed researchers said. The delinquency rate on credit cards was the highest since 2011, with the sharpest increase among borrowers aged 30 to 39.

It’s Also a Bad Time to Buy a House

Not too many people are enthusiastic about wading into the housing market right now. Mortgage giant Fannie Mae’s national housing survey for October found that 85% of consumers said it’s a “bad time” to buy a home. The main reasons are no surprise: high home prices and high mortgage rates.

Please remain safe and healthy, make today great!