Good morning and happy Friday! Existing home sales for the month of March came in lower than expected at -3.7% to a seasonally adjusted annualized rate of 6.01 million units. Given the current state of low inventory and high prices, many homeowners who would potentially be sellers are keeping their homes off the market, driving down existing home sales. New home sales, on the other hand, swung far in the other direction. After a dismal reading of -18.2% in February, the street was expecting a strong rebound, but they got an even stronger one! New home sales for March came in at +20.7% to a seasonally-adjusted annual rate of 1.021 million units, the fastest pace for this index since 2006. Despite rising home prices, rising costs for building materials, and lack of supply, the single-family market keeps plowing forward.
The 10yr. T-note is currently -9/32 to yield 1.57%, and the FNMA 30yr. 2.5% is trading at $103-20 to yield 1.76% with a +81 spread over the treasury curve. Thanks, and have a wonderful weekend.
Cherry Picks
10 Year Fixed
15 Year Fixed
20 Year Fixed
30 Year Fixed
Agency CMBS
Agency CMO – 3 Year
Agency CMO – 5 Year
Agency CMO – Long End
Jim Tait is a registered representative with and offers securities through Hanover Securities, Inc. (Hanover), Member FINRA & SIPC. Although this information has been obtained from sources we believe reliable, we do not guarantee its accuracy, and it may be incomplete or condensed. This is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Securities that may be shown are subject to availability and changes in price. Past performance is not indicative of future results. Changes in any assumptions may have a material effect on projected results.
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Although this information has been obtained from sources we believe reliable, we do not guarantee its accuracy, and it may be incomplete or condensed. This is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Loans and/or Securities which may be shown are subject to availability and changes in price. Past performance is not indicative of future results. Changes in any assumptions may have a material effect on projected results. This information from Banes Capital Group (BCG) and/or Hanover Securities is for your private use, and was obtained from sources we believe to be reliable. However, we do not represent that this information is accurate or complete, and it should not be relied on as such. This information is for institutional investors only, and as such certain transactions may give rise to substantial risk and are not suitable for all investors. This information was based on current market indicators which may vary over time. We may from time to time buy or sell, or have long or short positions in loans or securities identical or related to those identified herein.
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