Good morning and happy hump day. If it’s Wednesday it must be the day for Mortgage Applications, this one for the week ending May 14th. Last week we got +2.1%. At 6:00 a.m. central today we got +1.2%. Yesterday’s Housing Starts number (-9.5% overall) contributed to quite a bit of chatter this morning. The biggest blame for this pullback seems to be laid at the feet of the huge supply shortage and rising prices in the lumber market. No doubt this will contribute to more panic buying in the existing home market. The most interesting story on this, however, was in the details. In the single-family market the number was -13.4%. In the larger unit multi-family market, with 5-units or more (are you sitting down?), the breakout was +4.0%. Yep, you’re seeing that right. Apparently if you’re building a 200-unit rental complex there’s plenty of lumber. If we were conspiracy nuts that would almost look like someone would rather have us, as a country, renting as opposed to owning homes. Can you say Agenda 2030?
The bond market today is up small. The 10yr T-Note is +2/32 to yield 1.62%. In MBS 30yr FNMA 2.50% are +5/32 to yield 1.74%, which is +87 to the 5.2yr treasury curve. Remember to call us if you buy or sell MBS! Have a great day!
Cherry Picks
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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.
This information from Hanover Securities is for your private use and does not constitute an offer or solicitation with respect to the sale of any security. This information was obtained from sources we believe to be reliable but we do not represent that it is accurate or complete, and it should not be relied on 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 securities identical or related to those identified herein.
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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