Vital Statistics:
Last
|
Change
|
Percent
|
|
S&P Futures
|
1699.3
|
-3.1
|
-0.18%
|
Eurostoxx Index
|
2914.4
|
-12.8
|
-0.44%
|
Oil (WTI)
|
104.5
|
-0.3
|
-0.24%
|
LIBOR
|
0.251
|
0.001
|
0.40%
|
US Dollar Index (DXY)
|
80.39
|
-0.038
|
-0.05%
|
10 Year Govt Bond Yield
|
2.73%
|
0.00%
|
|
Current Coupon Ginnie Mae TBA
|
104.8
|
0.1
|
|
Current Coupon Fannie Mae TBA
|
103.9
|
0.0
|
|
RPX Composite Real Estate Index
|
200.7
|
-0.2
|
|
BankRate 30 Year Fixed Rate Mortgage
|
4.42
|
Markets are lower
as they start to worry about the machinations over the debt ceiling and the
continuing resolution. Bonds and MBS are more or less flat.
We will have lots
of relevant data this week, with Case-Shiller and the FHFA Home Price Index on
Tuesday, Lennar and KB Home earnings on Tuesday as well, and the third revision
to 2Q GDP on Thursday. Note the Fed took down 2013 GDP projections by 30 basis
points in its economic forecast, so maybe they know the revision is going to be
bad. The Street is at 2.6%. Don't forget Q1 GDP started at something like 2.5%
and was revised downward to 1.1%.
The tea party
wing of the Republican Party is demanding that obamacare be delayed or
de-funded as a condition to raising the debt ceiling. Needless to say, this is
going nowhere in a Democratically controlled Senate and won't be signed by the
author either. The continuing resolution will be the first hurdle, and
Republicans do have something to protect in that it keeps sequestration-level
spending in place. The debt ceiling is a messier affair, but Republican
leadership is dead-set against defaulting on the debt, so this will get passed
one way or the other, but it may cost Boehner his speakership if he passes an
increase in the debt ceiling by relying on Democratic votes.
The FHFA is trying
to figure out why eligible
borrowers are not taking advantage of HARP. There seems to be this perception
that you have to be delinquent to take advantage of it, which is false.
Brent Nyitray, CFA
iDirect Home Loans
1010 Washington St, 6th floor
Stamford CT 06901
T: 203-817-3614
C: 917-841-4938
AIM bnyitray
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