That’s volatility! The IMF is reporting a bumpy road ahead for the global economy. Catepillar started the day with optimism, then crashed with a “good as it gets” comment.
Yes, the US Treasury 10-year note yield pieced the 3% barrier … before subsiding.
Yes, The Federal Reserve is removing its excessive monetary stimulus at a sloth-like pace. And home price inflation is actually accelerating with the February Case-Shiller HPI growing at 6.34% YoY.
According to the National Association of Realtors, existing home sales fell 1.2% YoY in March.
But that isn’t really the important tidbit from this story.
Freddie Mac reported on Thursday that its weekly average 30-year fixed mortgage rate rose to 4.47%, the highest since January 2014. Unfortunately, home prices have risen since January 2014 as well.
The World Economic Forum said in a study that the pension deficit is growing by $28 billion every 24 hours – and if nothing is done to slow the growth rate, the deficit will reach $400 trillion by 2050, or about five times the size of the global economy today.
St. Louis Fed Economic News Index, their real GDP “nowcast,” projects Q1 growth at 3.50 percent, up from its previous week’s projection of 3.36 percent.
Have a nice weekend!
Federal mortgage giants Fannie Mae and Freddie Mac remain in conservatorship with their regulator FHFA since September 6, 2008. Come September, this will represent ten years in conservatorship. With the excellent assistance from George Mason University finance majors Hakeem Azoor and Belle Matthews using Python, we have created the three stages of Fannie Mae and Freddie … Continue reading The Three Stages of Fannie Mae and Freddie Mac (Credit Scores) →
The 30-year – 10-year yield curve slope is flattening faster than other Treasury curves. In fact, the 30Y-10Y slope is at 18.65 BPS and is rapidly approaching inversion as it has prior to previous recessions.
Yes, it is time for t…
Only two months ago, the prospect of 10-year Treasury yields reaching 3 percent was an almost certainty after a relentless climb from 2.4 percent at the start of the year.