Good Morning on this best day of the week, Wednesday,
Is this December? Bonds started weak but have since pared all losses and are positive. Equities also positive, as is crypto. Sounds like money needs to be deployed on this first day of the month. Be careful though, there is a lot of data yet to come. Today the ADP Employment report came in higher than expected, this tends to concern traders that the Non-Farm Payroll numbers coming at the end of this week will also be strong. Also, the ISM manufacturing report beat expectations, which is another reason for traders to pause. I would be careful, that Jobs report on Friday is going to create a lot of volatility.
In addition to FHFA raising conventional loan limits to $647,200, which takes effect immediately, we also received updates from FHA which raises our 2022 maximum mortgage amount to $420,680. This will go into effect for case numbers assigned after 1/1/2022
A little bit of history to reflect back upon and see how far markets have come. On this day in 1919, the Chicago Mercantile Exchange, which had its origins in the Chicago Produce Exchange (established in 1874), opened for its first day of trading. Total volume in 45 minutes of trading: three lots of egg futures. In the days before chicken coops had aluminum roofs to keep temperatures moderate year-round, hens laid eggs regularly only in spring, so egg buyers had to hedge their supplies the rest of the year
Last, yesterday there was a terrible school shooting in Michigan where four children lost their lives at the hands of another student. The sadness and sympathy for all those affected cannot be overstated.
Please remain safe and healthy, enjoy the holiday season and make today great.