| Last | Change | Percent | |
| S&P Futures | 1812.4 | -11.8 | -0.65% |
| Eurostoxx Index | 3075.9 | -41.2 | -1.32% |
| Oil (WTI) | 97.19 | -0.1 | -0.13% |
| LIBOR | 0.235 | -0.003 | -1.36% |
| US Dollar Index (DXY) | 80.45 | 0.007 | 0.01% |
| 10 Year Govt Bond Yield | 2.74% | -0.04% | |
| Current Coupon Ginnie Mae TBA | 105.4 | 0.1 | |
| Current Coupon Fannie Mae TBA | 104.2 | 0.1 | |
| RPX Composite Real Estate Index | 200.7 | -0.2 | |
| BankRate 30 Year Fixed Rate Mortgage | 4.38 |
Markets are lower again after yesterday's bloodbath. Emerging markets have been getting smoked lately, which is probably QE - driven to some extent. Bonds are beneficiaries of the risk-off trade, with the 10 year trading below 2.75%.
The government's guns are not only trained on mortgage bankers, they are also on payday lenders who are running afoul of usury laws. The Feds seem to forget that if a lender is going to make a loan that only lasts a week or so, they have to charge a high enough interest rate to make it worthwhile. Which means an eye-popping rate if you annualize it. They also hate check cashing places too. Not sure what low-income people are going to do for cash once these guys are chased out of business, but I am sure fair lending will have something to do with the "solution."
Another chart to show how affordable buying has become. I took the median house price since the mid 70s, and calculated the expected mortgage payment using the conforming rate at the time (with 20% down) and divided that by median income. We have just bounced off all-time lows, so even though housing is more expensive than it was a year ago, it is still very cheap historically.
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