Daily Market Report 11/30/21

By
Mortgage and Lending with Evolve Bank & Trust NMLS #275652

http://MikesDailyMarketReport.com:  The Case Shiller Home Price Index (HPI), which measures the Top 20 Markets in the US, rose 1.0% in September and brought it's YoY down to 19.1%.  Like it's counter-part, the FHFA HPI rose only 0.9% in September and it's YoY was brought down to 17.7%.  The FHFA HPI shows homes with conforming loans.  Speaking of FHFA, they released the new conforming loan limit for 2022 today, which rose to $647,200.  As the HPIs address, there has been a deceleration in home prices, which means home prices continue to rise, but not at the high pace previously.  Also, on the economic calendar is the Chicago PMI, which measures the business activity in the Chicago region.  It dropped nearly 7 points to 61.8 in November.  Anything above 50 for this index is still expansion/optimism.  Lastly, we have the Consumer Confidence dropping from 111.6 in October to 109.5 in November.  Stocks are way down today.  The Markets first reacted to comments by Moderna  CEO when he stated that the current vaccines don't have much efficacy to the new variant, which spooked the Markets.  This helped MBS, as it opened at it's 50 DMA and even went higher.  However, during the testimony by Powell and Yellen before the Senate Banking Committee, MBS dropped back to it's 25 DMA, and even lower, before climbing back up to 25 DMA.  Powell commented that he feels the Fed should increase their pace of the taper and finish several months earlier than expected.  He wants to do this regardless of the upcoming possibilities of the new variant.  Also, he commented that we can remove the word transitory while speaking about inflation.  He does feel that inflation will subside, but a lot of it will remain, as wages spike, along with a few other sectors affecting the inflation data.  Currently MBS is Down 5bps.  For the most part, current rate sheets should look more like yesterday's close.  Yields dropped substantially, as it's currently down to 1.44%.

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