| Last | Change | Percent | |
| S&P Futures | 1692.7 | 2.4 | 0.14% |
| Eurostoxx Index | 2739.6 | 14.2 | 0.52% |
| Oil (WTI) | 105.8 | -1.1 | -1.06% |
| LIBOR | 0.266 | 0.001 | 0.45% |
| US Dollar Index (DXY) | 82.28 | 0.058 | 0.07% |
| 10 Year Govt Bond Yield | 2.52% | 0.04% | |
| Current Coupon Ginnie Mae TBA | 104.6 | -0.2 | |
| Current Coupon Fannie Mae TBA | 104.1 | -0.2 | |
| RPX Composite Real Estate Index | 200.7 | -0.2 | |
| BankRate 30 Year Fixed Rate Mortgage | 4.3 |
Markets are slightly higher on a mixed bag of earnings and emerging Asia strength. Bonds and MBS are victims of the risk on trade.
The FHFA House Price Index rose .7% in May, and about 7.3% year-over-year. The FHFA House Price index is based on houses that have a conforming mortgage attached to it, so it eliminates the highly distressed sales and the high end of the market. This makes it more of a "central tendency" index than Case-Schiller. We are still seeing a wide geographical dispersion of increases, with the East Coast lagging while the West Coast is hitting big numbers.
Fannie Mae is predicting that mortgage rate will average 4.7% in Q4, about 40 basis points higher than their June forecast. They are predicting 2013 GDP will come in around 2% and will hit 2.6% in 2015. Home Sales are forecast to increase 8% in 2013. While they have yet to adjust sales forecasts to the new interest rate regime, they are watching it closely.
Professional (read cash) investors are stepping away from the real estate market as prices continue to rise. Investor traffic fell in June for the fourth straight month. Perhaps rising prices are to blame, but perhaps private equity and hedge funds are realizing that achieving high single-digit rental yields is harder than it looks and takes more than a couple smart guys out of New York to make it happen.
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