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Loan Depot
Sales Manager
Barry David Krevoy
Sales Manager
Loan Depot
NMLS#: 923896
Phone: 949-735-4009
Email: barry@loanofficerbarry.com
Website: http://www.loanofficerbarry.com
Daily Market Analysis

US and global equity markets on fire this morning. The DJIA +113 in pre-opening trade. The rate markets are holding steady with some early gains. The ECB is saying it is likely to make just small adjustments to its monetary guidance next rather than any major changes. The comments pushed Europe’s stocks higher and supported a strong response in the US markets.

Stocks also getting a boost that AT&T/Time Warner merger will win over the Justice Dept. saying it will block the merger. Earnings from retailers are also adding to the stock market improvement. Trade volumes thin this week; that adds to the price volatility. On Monday we said we didn’t expect much movement in markets this week; doesn’t appear we were correct, given markets yesterday and this morning. Yearend buying is said to be moving markets higher, and of course there is little debate now that Congress will pass a tax cut bill, possibly before the end of the year. President Trump yesterday said he would not oppose keeping the penalty for those who don’t purchase health care insurance. The Senate version would eliminate the penalty.

Europe’s bond markets improved today and is following through in the US. Germany’s political situation in turmoil now; Angela Merkel failed to establish a coalition government after her party lost in the September elections. The strongest economy in Europe and the leader politically is now unsettled leading to some safe moves into sovereign debt; the 10-year German bund down 2 bps to 0.34%. Other sovereign debt markets in Europe also better; the only exceptions are Greece and the UK.

At 10:00 AM ET, the only data today: October existing home sales expected at 5.44 mil, up from 5.39 mil originally reported. Sales were at 5.48 mil, but September revised from 5.39 mil to 5.37 mil. Sales in October +2.0% from the revised September data; yr./yr. sales -0.9%. Strength shows for both single-family resales, up 2.1% to a 4.870 million rate and up 1.7% for condos to a 610,000 rate. Discounting was limited in October, with the price median down only 0.2% to $247,000 for 5.5% year-on-year appreciation. Supply is yet again a negative for resales, falling 3.2% to 1.800 million homes on the market. On a sales basis, supply is at a very thin 3.9 months following five straight readings at 4.2 months.

Technically, the 10 yr. is still in its two-month range keeping mortgage rates generally unchanged. Better this morning at 2.34% with strong resistance at 2.32%.

PRICES @ 10:10 AM

10 yr note: +8/32 (25 bp) 2.34% -3 bps

5 yr note: +2/32 (6 bp) 2.08% -1 bp

2 Yr note: -1/32 (3 bp) 1.77% +1 bp

30 yr bond: +23/32 (72 bp) 2.74% -4 bp

Libor Rates: 1 mo 1.294%; 3 mo 1.445%; 6 mo 1.634%; 1 yr 1.908%

30 yr FNMA 3.5 Dec: @9:30 102.66 +10 bp (+5 bp from 9:30 yesterday)

15 yr FNMA 3.0: @9:30 101.99 +3 bp (-3 bp from 9:30 yesterday)

30 yr GNMA 3.5: @9:30 103.58 +8 bp (+5 bp from 9:30 yesterday)

Dollar/Yen: 112.22 -0.40 yen

Dollar/Euro: $1.1737 +$0.0005

Dollar Index: 93.93 -0.12

Gold: $1283.00 +$7.70

Crude Oil: $56.74 +$0.32

DJIA: 23,566.04 +135.71

NASDAQ: 6847.62 +56.91

S&P 500: 2595.86 +13.72

About Barry David Krevoy

Barry is a Sales Manager with Loan Depot in Irvine CA. In his blog, www.LoanOfficerBarry.com, he delivers his insights on the Mortgage Industry, Real Estate Market and Economy. His mission is to provide the finest level of service with proper locking advice and communication.

About This Report And Disclosure Information

All information furnished has been forwarded to you and is provided by thetbwsgroup only for informational purposes. Forecasting shall be considered as events which may be expected but not guaranteed. Neither the forwarding party and/or company nor thetbwsgroup assume any responsibility to any person who relies on information or forecasting contained in this report and disclaims all liability in respect to decisions or actions, or lack thereof based on any or all of the contents of this report.

Rates are for 45 day pricing and are not for public distribution. Rate and APR will vary based on factors such as points, loan amount, loan-to-value, borrower’s credit, property type and occupancy. Loan programs are based on owner occupied and full documentation.