Good Monday AM from your Hometown Lender,
US equity futures are flat today…
Inflation figures last week did little to alter views that the Federal Reserve will cut interest rates this year. Data released during the market holiday on Friday showed the core personal consumption expenditures price index — which excludes volatile food and energy costs — rose 0.3% in February, slower than the previous month and in line with economist expectations. Federal Reserve Chair Jerome Powell said later Friday that the readings were “pretty much in line with our expectations.” Powell added that it wouldn’t be appropriate to lower rates until officials are sure inflation is in check and the Fed doesn’t need to be in a hurry to cut rates. Investors are betting the US central bank will make that first cut in June.
Bonds aren’t so lucky today despite construction spending missing expectations and dropping like a rock. As there was not enough momentum for the 10-yr to break through that line of resistance at 4.18% last week, the 10-yr has faded back to 4.33% today. Mortgage bonds are also off about 30bps. Not that we would like to start the day, month, quarter this way but I don’t see this as a troubling sign, just a bit of an annoyance for the moment.
This was a funny post from the embattled NAR…
The National Association of Realtors, with various capital letters, (“NAR”) shocked the real estate and lending world with the announcement that it discovered what many have believed to be the case: it has been double counting numbers. The press release suggested taking any statistic from NAR and dividing it in two to give a more accurate description of local activity. One unnamed official said, “If a selling agent sells a place for $750k, and a buyer’s agent helps the buyer buy the place for $750k, somehow our statistics have been showing $1.5 million in transactions! And to think, we’ve been double counting for decades!”
Please remain safe and healthy, make today great!!!