As spring heralds new beginnings, so does the housing market witness its usual inventory dance. But this season, there’s more to the waltz than meets the eye. Dive into this week’s bulletin as we unveil the latest in mortgage-backed securities, global yields, and the ever-evolving real estate landscape. And, as always, we add a sprinkle of economic humor to keep the numbers light.
Understanding the Global Rising Yield Phenomenon
While we might’ve woken up on the wrong side of the bed with mortgage-backed securities down 30 basis points, the global story reveals a different tune. It’s a universal crescendo from Japan’s 10-year equivalents touching .88% to Germany’s 10-year bond nearing 3%. But every cloud has a silver lining. The rising yields can become a magnet for bond investors, setting the stage for potentially declining yields.
Unpacking the Domestic Front: Auto Delinquencies and Inventory Build
Back home, Fitch’s latest report highlights subprime borrowers’ auto delinquencies, hitting a record 6.1%. An early sign of cracks in the economic facade? Meanwhile, as per Redfin, February saw a 1.4% month-over-month rise in new listings. The media might have a heyday with these numbers, predicting an impending doom. Still, seasoned investors know that with more inventory come more sales opportunities.
The Week Ahead: Key Numbers and a Not-to-Miss Webinar
This week’s eyes are on the GDP, new home sales, pending home sales, and the pièce de résistance, Friday’s PCE number. The inflation saga continues!
While the ebb and flow of the mortgage market are par for the course, the global rising yield story offers intriguing insights for the discerning investor. From foreign shores to our home turf, there’s much to glean and strategize. Keep an eagle eye on the 5% yield level, and remember, after the rain, there’s always a rainbow. Here’s to smarter investments and a prosperous future!
Stay savvy, California Platinum Loans readers. Until next time!