Good morning and happy Friday! Today is a big day in scheduled housing releases. At 9:00 a.m. central time we got Existing Home Sales for April. March was still coming off the bad winter weather when we got a -3.7% print last month. The street was looking for a modest +1.0% increase on today’s number, we got -2.7%. In other news today, in their May report Fannie Mae has upwardly revised its GDP estimate for the year to +7.0% from an earlier +6.8%. And, of course, whether or not we actually have inflation is one of the big questions on everyone’s minds. Hidden in the details of some reports that don’t look inflationary in the headline numbers are some surprises. In the weak Philadelphia Fed report from yesterday, for example, the prices paid component soared 8 points to its highest level since March 1980. Remember that in 1980 the Prime Interest Rate was on its way to an all-time high of 20.5%!
Bonds today are down in price a little. The 10yr T-Notes are -3/32 to yield 1.63%. In MBS, 30yr FNMA 2.50% are +2/32 to yield 1.77%, which is +87 to the 5.2yr treasury curve. We buy and sell MBS, so call us if you need some help! We hope you ahve a wonderful weekend and a great rest fo your day!
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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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