| Last | Change | Percent | |
| S&P Futures | 1988.2 | -0.8 | -0.04% |
| Eurostoxx Index | 3233.5 | -4.3 | -0.13% |
| Oil (WTI) | 92.92 | 0.1 | 0.10% |
| LIBOR | 0.235 | 0.000 | 0.00% |
| US Dollar Index (DXY) | 84.24 | -0.061 | -0.07% |
| 10 Year Govt Bond Yield | 2.59% | 0.04% | |
| Current Coupon Ginnie Mae TBA | 106.1 | -0.2 | |
| Current Coupon Fannie Mae TBA | 104.9 | -0.2 | |
| BankRate 30 Year Fixed Rate Mortgage | 4.16 |
Markets are flat as we close out a dull week. Bonds and MBS are down amidst a global bond sell-off.
Retail Sales increased .6% in August. Ex autos and gas, they increased .4%. July's numbers were revised upwards.
Import prices fell .9% in August, driven by a drop in oil prices. Ex food and fuels, import prices were flat.
The preliminary September reading for the University of Michigan Consumer Sentiment indicator showed an increase and hit the high for the past year.
The jumbo securitization market is pretty much dormant, except for the occasional Redwood Trust deal. Only 2.3% of all jumbos originated in the first half of 2014 have been securitized. At the peak of the housing bubble, almost half of all jumbos were securitized. Banks are instead choosing to hold them on their balance sheet. Banks are subsidizing the jumbo mortgage rate in order to bring in the wealthy client and then offer all other sorts of banking services, including the lucrative wealth management business.
Another article about the lowering of the speed limit for the economy. Federal Reserve economists do not expect the labor force participation rate to increased meaningfully as the labor market improves. They argue that the number of people who aren't working, but would work if conditions were better are relatively small. The upshot is that this paper bolsters the hawk case at the Fed and is ammo for those who want to start raising rates. Not sure dove Yellen will play along, and the voting members will take a dovish turn next year as hawks like Plosser lose their vote.
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