I’m just going to flip this omelette… Okay, we’re having scrambled eggs.
I wish I was a kid again so everyone would be proud of me for taking a long nap.
Pool rules: You’re not allowed to do anything that begins with the words ‘Hey everyone watch this!’
You’re riding a horse full speed, and there’s a giraffe on your left and a lion chasing you from behind, so what do you do? Get off the carousel!
I never make the same mistake twice. I make it three four times, you know, just to be sure!
Now the Market Update . . .
Consumer spending rose slightly in June, but there was little sign of inflation as personal consumption expenditures barely moved. No inflation is good for rates.
The already strong labor market continues to tighten, with fewer jobless claims and layoffs last week. Claims have now been below 300,000 for 126 weeks.
Construction spending fell unexpectedly in June, mainly due to a drop in public projects. Private residential construction was down only 0.2% in June.
Mortgage applications fell slightly this week, down 2.8%. However, purchase applications were 9% higher than the same week a year ago.
Pending home sales were up in June, after 3 straight monthly declines. NAR’s Pending Home Sales Index jumped 1.5%, double economists’ expectations.
The housing market remains constrained by a shortage of properties for sale. Homebuilders struggle to fill the gap, citing higher costs and labor shortages.
The housing Market struggled through the Spring season, but the latest data shows promise for the existing home sales data coming in later this month.
With mortgage rates continuing to remain low, this holds promise that the second-half of the year can end up being a much stronger housing market than normal.
To the optimist, the glass is half full.
To the pessimist, the glass is half empty.
To the underwriter, it doesn’t really matter. You just need to provide the receipt for when you bought the glass.
This week’s potential market moving reports are:
Monday August 7th: Labor Market Conditions Index
Tuesday August 8th: Job Openings and Labor Turnover Report (JOLTS)
Wednesday August 9th: MBA Mortgage Applications
Thursday August 10th: First Time Jobless Claims, Producer Price Index
Friday August 11th: Consumer Price Index
