| Last | Change | Percent | |
| S&P Futures | 2016.9 | 1.0 | 0.05% |
| Eurostoxx Index | 3031.4 | 8.3 | 0.27% |
| Oil (WTI) | 49.12 | -0.9 | -1.84% |
| LIBOR | 0.256 | 0.000 | 0.00% |
| US Dollar Index (DXY) | 91.55 | 0.173 | 0.19% |
| 10 Year Govt Bond Yield | 1.98% | -0.05% | |
| Current Coupon Ginnie Mae TBA | 105.8 | 0.2 | |
| Current Coupon Fannie Mae TBA | 105.2 | 0.2 | |
| BankRate 30 Year Fixed Rate Mortgage | 3.99 |
Stocks are flattish after yesterday's bloodbath. The 10 year bond is trading with a 1 handle. Oil is trading below $50 a barrel.
US bonds continue to be dragged lower by bond markets worldwide. You can now get a whopping 29 basis points for lending money to the Japanese government for 10 years. If you invested a million yen in a JGB, your quarterly interest payment would probably not even cover a Venti latte at a Starbucks in Tokyo.
It is looking like the economy took a step back in December, with the ISM Services Index falling to 56.2 from 59.3, and factory orders falling by .7%. I am beginning to wonder if Friday's expectations might be too high.
Home prices rose .1% month over month in November, and are up 5.5% year over year, according to Corelogic. Growth is slowing in the big oil states and also in Washington DC.
It looks like yesterday's auto sales were indeed strong. We could have the best year since 2005. I think the average age of an American car is something like 11.5 years, which is a record. We are seriously due for an upgrade cycle. Unfortunately for environmentalists, the low price of gas is encouraging us to buy SUVs and not Prii.
The ground has shifted under cable TV providers. ESPN is going streaming. This is huge and paves the way for a la carte content
Ocwen has been taken to the woodshed after it agreed to sell its government MSR portfolio. The stock is down 77% over the past year. The big question is whether they have a business going forward. At this point, however it is probably trading close to asset value. If Ocwen does a fire sale, that could mean MSR values get hit (as we saw in 2009, 2010). This would mean lower gain on sale (SRPs) which means lower margins for the lenders. Stonegate has been getting hit as well.
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