Mortgage Bonds made a sharp move higher today. The 3% coupon rose 44bp to end the session at 104.69, just above resistance at 104.65. This was welcomed news for Mortgage Rates, as they improved by days end. I recommend floating, not locking into rates at this time.
Stocks ended near flat, the Dow closed at 13,107.21, the S&P 500 finished at 1,411.94 while the Nasdaq settled at 2,987.95. Oil was last seen at $86.10/barrel near unchanged.
If you take a look at the chart below – you can see how Bond Prices are moving down a staircase after a double top a few weeks ago. You can also see the former support at $104.65 is now serving as resistance… if prices can break above this ceiling then Mortgage rates might reverse back down. Remember that Mortgage Rates move in the opposite direction of Bond Prices.
Chart of Mortgage Bond Prices
Housing News
Why Aren’t the Candidates Talking About Housing
The silent campaign issue
More press outlets are starting to wonder why it is that neither the Republican nor Democratic candidates for the presidency will discuss housing.
PBS Newshour aired a segment Wednesday night that asked: why is it that housing, and in particular the ongoing foreclosure crisis, are missing from the campaign conversation? You can view the video and transcript here, and it’s worth your time.
And PBS isn’t alone.
Nobel Prize-winning economist Joseph Stiglitz took both the Democratic President and the Republican presidential candidate to task in an interview with Reuters yesterday, as well, saying it’s “shocking” that neither has discussed housing on the campaign trail.
New-Home Sales Jumped in September to 2-Year High
New U.S. single-family home sales surged in September to their highest level in nearly 2-1/2 years, further evidence the housing market recovery is gaining steam. The Commerce Department said on Wednesday sales increased 5.7 percent to a seasonally adjusted 389,000-unit annual rate — the highest level since April 2010, when sales were boosted by a tax credit for first-time homebuyers. Read more
Pending Home Sales Essentially Flat in September
In a sign of a still struggling housing market, signed contracts to buy existing homes were essentially flat in September from August, edging up just 0.3 percent according to a monthly index from the National Association of Realtors
Sellers Gaining in NYC Northern Suburbs
A new study by Siena Research Institute found that New Yorkers, particularly those in the northern suburbs, are feeling better about their prospects when it comes to selling their home.
Since the market crashed four years ago, buyers have had a huge advantage over sellers – assuming that they could afford the purchase or were able to acquire financing. Read more
NY Housing Market Posts Strong Third Quarter
The New York state housing market posted its fifth consecutive quarter of year-over-year home sales gains in the third quarter. The 3Q statewide median sales price increased by 4.4% and the number of pending sales grew for its fifth consecutive quarter, according to the New York State Association of Realtors.
NYSAR CEO Duncan Mackenzie said year-to-date home sales are up 6.2% and pending sales are up 15% compared to the year-ago period. The year-to-date median sales price of $215,000 is unchanged from a year ago.
“As we enter the final quarter of the year, New York state’s housing market continues to move in a positive direction as closed and pending sales continue to increase compared to a year ago,” he said. “While we have a seasonal market in our state, which tends to slow down in the fall and winter months, we are positioned to exceed the 2011 closed sales total and project that we will do so. Click to see the full report
Economic News
Banking giant UBS said to be cutting up to 10,000 jobs.
Jobless Claims Slide
Initial claims for state unemployment benefits dropped 23,000 to a seasonally adjusted 369,000, the Labor Department said on Thursday. The prior week’s figure was revised slightly higher to show 4,000 more applications than previously reported.
The 3rd Quarter Gross Domestic Product (GDP) came in at 2 percent, better than expectations of 1.8 percent.
Durable Goods Jumps, Spending Flat
The Commerce Department said on Thursday that non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, was unchanged last month at $60.3 billion. That was short of economists’ expectations for a 0.7 percent gain.
Sources: CNBC, MMG, Housingwire, LoHud Real Estate