| Last | Change | Percent | |
| S&P Futures | 1645.3 | -2.7 | -0.16% |
| Eurostoxx Index | 2801.6 | 6.0 | 0.21% |
| Oil (WTI) | 93.29 | -0.9 | -0.98% |
| LIBOR | 0.274 | 0.000 | 0.00% |
| US Dollar Index (DXY) | 83.94 | 0.343 | 0.41% |
| 10 Year Govt Bond Yield | 1.94% | -0.03% | |
| Current Coupon Ginnie Mae TBA | 105.2 | 0.3 | |
| Current Coupon Fannie Mae TBA | 102.7 | 0.2 | |
| RPX Composite Real Estate Index | 197.1 | 0.5 | |
| BankRate 30 Year Fixed Rate Mortgage | 3.65 |
Markets are lower this morning after an earnings miss from John Deere (DE) and better than expected earnings out of Macy's. The Producer Price Index fell .7% as commodity prices continue to drop. Bonds and MBS are up a quarter or so.
Mortgage Applications fell 7.3% in the last week, unsurprising given that rates have backed up so much. People will be looking at drier pipelines into early June. The purchase index fell by 4%, while the refi index fell 8%.
The Empire State Manufacturing Survey showed manufacturing contracted in the May. The six month outlook weakened as well. Inflation remains muted. The employment-related indicators (number of employees and average workweek) declined slightly. The Fed and other economists had been predicting a second quarter slowdown, and this is evidence of it. The consensus is for a re-acceleration into the second half of the year. Certainly the stock market and the bond market are focusing more on the 2H acceleration than they are on the current slowdown.
Lots of good stuff in the latest CoreLogic Market Pulse. They discuss how residential construction has moved from a drag to a driver on the economy. While the red-hot Western markets like Las Vegas and San Francisco are seeing professional-driven buying, the markets of North Carolina and Texas are more balanced and are the healthiest new sale markets..On a price to income ratio, housing is still as affordable as it has been since the 90s. RTWT.
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