Good Tuesday morning from your Hometown Lender,

The data release spigot for the week opened slowly today.

The Richmond Fed Manufacturing Index was dismal, Existing Home sales were weak, and the 2-yr Treasury auction was fantastic. This is all leading down the path of Fed rate cuts. The data releases will build up through the rest of the week with it culminating on Friday with the PCE report. PCE is the Fed’s favorite inflation gauge as it is far broader and pulls costs from the GDP report. Markets are not putting any chance on a rate cut next week, but I wouldn’t be surprised if the Fed does cut (as long as the data is weak).

By the numbers…

Reports suggest that, in the past four years, the average mortgage payment has increased by a whopping 96% – or nearly double – compared to recent years. A Zillow report stated that an average buyer must shell out at least $2,200 per month for a mortgage, saying that they can afford the 10% down payment for a new home. Based on current numbers, today’s housing costs are far beyond the traditional affordability threshold of 30% of the median household income of $74,580.

And this graph tell the story of 10,000 words.

It doesn’t look like anyone is saving money now. That is a bad sign for the economy and will end up bringing rates down.

Stay safe and make today great!