Good morning on this Wednesday from your Hometown Lender,

The data released today, while not top-tier, was also not bond-friendly.

Regardless, bonds continue to have a good day and both Treasuries and Mortgage Bonds are trading down (in yield) to their next resistance levels. This is important because the next levels of resistance are significant on the Fibonacci scale and would show a correction of 62% leading traders to bet on a full correction taking rates down another .125 – .25%. The number to watch is 4.15% on the 10-yr. We are currently trading at 4.16% so you can see we are knocking on that door. The opposite though is also true. If we do not break through, we could see rates back up another .125 and the 10-year jumping to 4.26%. I think it continues to be an ok choice to float. I sense markets are waiting on next week’s PCE report and the Fed meeting the following week for real direction.

This news broke this am and there are benefits and risks on both sides. It is tough to maintain price stability if you disincentive investors. The additional land to build housing is great but that is years away…

What are your thoughts?

President Biden has issued a new plan to make renting more affordable for millions of Americans through new actions to lower housing costs. The Biden Administration’s three-pronged approach involves capping rent increases, rehabbing distressed properties, and building affordable housing.

More specifically, the new Biden plan aims to:

• Call on Congress to pass legislation giving corporate landlords a choice to either cap rent increases on existing units at 5%, or risk losing current valuable federal tax breaks;
• Repurpose public land sustainably to enable as many as 15,000 additional affordable housing units to be built in Nevada; and
• Rehabilitate distressed housing, through the construction of more affordable housing, and revitalizing neighborhoods.

Stay safe, make today great!