It’s a holiday weekend and markets will be closed on Monday. Today’s newsletter will be focused on charts (and lighter on prose) so you can go enjoy the holiday weekend.
Source: Kevin Litwicki MBSLIVE
Rates Defy Jobs Report; No New 40yr Loan; Red Hot Home Prices
Mortgage Market's Most Powerful Person Just Got Fired. What Are The Implications?
This week, the Supreme Court ruled the structure of the FHFA was unconstitutional. One day later, Calabria was out and his temporary replacement had been named.
Why does this matter?
Source: Kevin Litwicki MBSLIVE
Mortgage Market's Most Powerful Person Just Got Fired. What Are The Implications?
Making Sense of This Week's Fed Drama
The Fed released a new scheduled policy announcement this week as well as updated economic projections. Relative chaos ensued. Let’s talk about why and what it means going forward.
Source: Kevin Litwicki MBSLIVE
Making Sense of This Week's Fed Drama
One of The Biggest Paradoxes You'll Ever See For Mortgage Rates
No, this isn’t one of those click-bait headlines that promise to share “one weird trick” or proclaim “you’ll never believe what happened next.” Well, actually, some people might have a hard time believing this one.
Source: Kevin Litwicki MBSLIVE
One of The Biggest Paradoxes You'll Ever See For Mortgage Rates
What This Week's Jobs Report Means For Rates
All eyes were on the big jobs report this week. Traders were anxious to see if it would be strong enough to accelerate the timeline for key policy changes that would greatly impact rates.
Source: Kevin Litwicki MBSLIVE
What This Week's Jobs Report Means For Rates
Highest Inflation in Decades, But Housing Has a Bigger Problem
Inflation is bad for interest rates and it’s at the highest levels in decades. But the housing market has a far bigger problem.
Source: Kevin Litwicki MBSLIVE
Highest Inflation in Decades, But Housing Has a Bigger Problem
What Are Rates and Housing Worried About?
In the past 2 weeks, there’s been big news about inflation and seemingly big news about Fed policy. Both are threats to low interest rates, but not just yet, apparently.
Source: Kevin Litwicki MBSLIVE
What Are Rates and Housing Worried About?
Big Inflation Scare, But Rates Remain Resilient
The 70’s and 80’s brought unforgettable economic lessons about the impact of inflation. Since then, certain market participants have been watching inflation like hawks, even when they didn’t need to.
Source: Kevin Litwicki MBSLIVE
Big Inflation Scare, But Rates Remain Resilient
Rates Reacted to Jobs Report, But Not Like You'd Expect
Rates are driven by bonds, and as far as the bond market is concerned, much of the week was spent waiting for Friday’s big jobs report. Rates have a clearly-defined reaction function when it comes to the jobs report. Specifically, more jobs = higher rates and fewer jobs = lower rates.
Source: Kevin Litwicki MBSLIVE
Rates Reacted to Jobs Report, But Not Like You'd Expect
Moment of Truth For Rates and Housing
This week’s 6.4% reading on Q1 GDP reinforced the notion of a strong economic recovery. In turn, the recovery helps to justify the sharp move higher in rates seen during the same 3 months. Rates managed to recover quite a bit in April, but ended up rising slightly this week. Is the intermission over?
Source: Kevin Litwicki MBSLIVE
Moment of Truth For Rates and Housing