Good morning and welcome to the weekend! All the scheduled releases for this week are done, so we have some other topics to cover. First up, Pending Home Sales released yesterday for Sept. It was slightly disappointing with a drop of -2.3% when the street was looking for a +0.5% rise. The blame is being attributed to higher interest rates. Overall, Pending Home Sales were 8% lower than a year earlier.
Second up is a look at millennial contribution to the red-hot housing market. As the housing rally has matured during the Covid era, Millennials have taken some of the reins from Boomers and Gen- X’ers. People aged 25 to 39 years have received 380 million in stimulus money and their net worth is higher than Gen-X was at the same age. A year ago, you would have heard us talk about how millennials were being left behind in housing, not quite the case in 4th quarter 2021. Going forward, their contribution should become much more noticeable.
Bonds today are up small, with the 10yr T-Notes +2/32 to yield 1.57%. In MBS 30yr FNMA 2.50% are -8/32 to $102-15, yielding 2.00% and +69 to the 5.7yr treasury curve. That’s it from us today, have a great weekend!
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