Mortgage Rate Intelligence & Market Updates

Core PCE came in at 0.2 vs a 0.3 forecast, and the bond market rallied a bit in response. That said, the unrounded number was .247, which about as high as it could be without rounding up to 0.3. Core annual PCE was 3.0, which was flat versus a downward revision from 3.3. More importantly, that downward revision wasn’t mainly about new data collection showing lower prices, but rather a change in PCE methodology. Not all of the methodology change is transparent, but our best estimate is that a vast majority of the 0.3 downward revision was due to methodology changes (the math: 0.361 unrounded drop in y/y core PCE, July vs July, and 0.30 of that drop is in categories that were affected by methodology changes). Bottom line, inflation was actually fairly flat, and supercore (excludes food/energy/housing) was noticeably higher. Add the stronger ADP and GDP numbers into the mix, and bonds don’t have a lot to celebrate this morning, so merely holding ground is a victory.  Bottom line, y/y core PCE was HIGHER in August vs July before both rounded to 3.0%.

Learn how to choose a real estate agent with our 10-step guide. Compare top local agents, ask the right interview questions, and avoid red flags.

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In the first two posts of this three-part series, we discussed private market participants that are active in repo markets for profit-making motives. Central banks are also active repo market participants, but their reasons often differ from those of private participants. In today’s post, we discuss how central banks use repos to manage liquidity in the financial system and implement monetary policy.

Fannie Mae and Freddie Mac now allow VantageScore 4.0 as an alternative to Classic FICO for eligible loans

With 860,000 public housing units remaining, Congress locks in RAD authorization and extends its reach as investment totals $28.4 billion

Court cites 35%-40% referral fees and claims of 60% audience share in denying Zillow’s motion to dismiss

Homes are expensive, the market is slow, and buyers are wary. But some cities favor sellers. Learn if you should sell your house now, or wait.

The post Should I Sell My House Now? appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.

Austin, Houston buyers gain choices as sellers cut prices

Big Intraday Round Trip For Bonds; Williams Helped

Bonds spent the first half of the day pressing into even weaker levels in spite of a respectable drop in oil prices. Data and headlines had little to no bearing on the selling. If anything, the biggest scapegoat is the combination of bearish momentum and quarter-end trading (something we’re extrapolating from the mirror-image correlation between stocks and bond yields). 10yr yields crested 5.29% at their weakest levels–right in line with the only obvious nearby technical level from 2007. Bearishness reversed at 2pm when Fed Gov Williams said he didn’t see a need for urgency after the September rate hike. Fed Funds Futures rallied quickly and the entire yield curve (apart from 30yr bonds) ended up making it back to positive territory by the close. 

Econ Data / Events

Case Shiller Home Prices-20 y/y (Jul)

2.5% vs 2.2% f’cast, 2.1% prev

FHFA Home Price Index m/m (Jul)

0.3% vs 0.1% f’cast, 0% prev

CB Consumer Confidence (Sep)

81.9 vs 89.2 f’cast, 89.4 prev

USA JOLTS Job Openings (Aug)

7.079M vs 7.23M f’cast, 7.271M prev

Market Movement Recap

08:58 AM MBS up 2 ticks (.06) and 10yr down less than 1bp at 5.231

10:05 AM Heavy selling between 9:30am and 10am. Bouncing modestly after 10am data. MBS down over an eighth and 10yr up 1.1bps at 5.25

02:26 PM MBS down a quarter point, but well off the weakest levels after Williams’ comments implying no urgent need for additional rate hikes. 10yr still up 2.6bps at 4.267