| Last | Change | Percent | |
| S&P Futures | 1435.8 | 5.2 | 0.36% |
| Eurostoxx Index | 2568.4 | 10.7 | 0.42% |
| Oil (WTI) | 97.4 | 0.2 | 0.24% |
| LIBOR | 0.394 | -0.005 | -1.13% |
| US Dollar Index (DXY) | 79.74 | -0.113 | -0.14% |
| 10 Year Govt Bond Yield | 1.74% | 0.03% | |
| RPX Composite Real Estate Index | 193.2 | 0.1 |
Markets are buoyant this morning after a German Court ruled against efforts to block a european rescue fund. Apple is unveiling the iPhone 5 today as well. Mortgage applications rose, while import prices fell. Bonds are down about 3/4 of a point and MBS are down 1/4 or so.
The FOMC starts their two day meeting today, and will release their decision tomorrow around noon. The market expectations are for an extension of ZIRP into 2015 and a new round of bond buying. Given the run we have had in the stock market, we are possibly setting ourselves up for disappointment or a "buy the rumor, sell the fact" reaction.
If you live in a state with judicial foreclosures (e.g. New York, New Jersey, Florida), you may find that it will cost you more to get a mortgage. Acting FHFA Chairman Ed DeMarco has suggested that Fan and Fred increase their guarantee fees in these states to compensate the fund for the elongated timelines. (It can take 5 years to complete the entire process in NY, while in non-judicial states like AZ the process can be done in 2). JP Morgan estimates that the proper compensation would be 10 - 20 basis points up front. FHFA intends to put the policy out for comment in the near future, where it will undoubtedly get panned by housing advocates.
WaPo has a long background piece on the CFPB and what it is up to (spraying lenders with subpoenas).
Foreclosure auctions are attracting big institutional money. Colony, Blackstone, Och-Ziff and Oaktree have raised $8 billion for the activity. The plan is to rent them out of drip them out slowly into a rising housing market. In an era of ZIRP, high single digit rental yields are appealing to yield starved investors.
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