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

More data today.

Still B tier but data nonetheless. The Purchasing Manager’s Index showed some growth in the service sector but it showed a reduction in the manufacturing sector and it is now in contraction territory. New Home Home sales were weak (as were existing home sales, yesterday). The Bank of Canada cut its lending rate again today and now sits at 4.5%. Canada is far ahead of the US. European PMI came in negative, and I am sure that had that report been available before the ECB met last week, they would have cut again as well. We have a 5-yr Treasury auction in about an hour and if it is met with the same demand the 2-yr auction was yesterday, rates will dip lower. Regardless, this is all leading down a path to Fed rate cuts. Tomorrow brings GDP, Durable Goods, and Unemployment claims, all of which could add more pressure on the Fed to cut sooner. I would not be surprised if the Fed held off cutting until September, but if this week’s data continues to be soft, I think they could make a case for cutting next week.

I’ve been hearing for some time that foreclosures in the west are increasing (or going to be)…

Well by the numbers, the west is not even in the top 20 for increasing delinquency. The state where mortgage debt delinquency is increasing the most is Vermont, with nearly 24% more mortgages delinquent in Q1 2024 than in Q4 2023. Residents in Vermont are delinquent on 7.1% of their mortgages, which is the 14th-highest delinquency rate in the country.

Other states at the top of the list include:

Nebraska and Rhode Island. Nebraska’s residents fell behind on payments for nearly 23% more mortgages between Q4 2023 and Q1 2024, but the state only has the 28th-highest total delinquency rate at 6%. In Rhode Island, mortgage delinquency increased by nearly 20% between Q4 2023 and Q1 2024. A small number of Rhode Island residents have been allowed to delay payments on their debts due to financial difficulty. Additionally, the top 5 states with the highest number of foreclosures per capita are Indiana, Michigan, Wisconsin, Ohio and Maryland.

Stay safe and make today great!