A quiet day after a volatile week

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Published Date 5/17/2024

After a week full of key data, today nothing but Leading Economic Indicators which doesn’t get much notice.

Unlike this week, next week has less to focus on, no direct inflation data. Housing reports including existing home sales and new home sales. The FOMC minutes from the May 1st meeting.

News from the wires: Recent national data suggests that more sellers are thinking about entering the market, as the crucial spring selling season reaches its peak period. More than two-thirds of consumers surveyed by Fannie Mae in April said it was a good time to sell a home, the highest level since July 2022. Nationally, active listings in April were 36% below typical pre-pandemic levels, according to Realtor.com. News Corp, parent of the Journal, operates Realtor.com.(WSJ)

Still feeling the impact of COVID when it comes to rates. COVID caused rates to decline to levels unsustainable in a normal world. That era is over as most now realize but still have difficulty believing rates will work back to the artificial lows. Reminds of the housing market disaster in the early 2000’s when anything thrown on the wall stuck, liar loans 1 year ‘teaser rates’ as low as 2.0%, no underwriting, make up your own income with no verification. Consumers (would be home buyers and sellers) still hoping mortgage rates will decline back to levels of 2 years ago and that isn’t in the cards now.

At 9:30 am the DJIA opened +49, NASDAQ +12, S&P +4. 10 year note +2 bps at 4.40%. FNMA 6.0 30 year coupon -2 bp from yesterday’s close but -41 bp from 9:30 am yesterday.

Today should be quiet.

Source: TBWS

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