Majority Considering Moving Due to Pandemic; Delinquencies Remain Elevated; Rates Move Up

A recent survey by Lending Tree found that nearly half of Americans are thinking about moving in the not-to-distant future and it appears that the COVID-19 pandemic may be at least part of their motivation. Crissinda Ponder writes that the health crisis has affected nearly every aspect of daily life, and with 11 million Americans unemployed, residents make an exodus from major cities, a desire for more living space. There is no reason to think that housing choices would be any less affected. The Lending Tree survey covered 2,000 consumers and 46 percent said they were thinking about relocating within the next year. Twenty-seven percent are considering a new home in their current area, with a primary motivation of reducing their living expenses. Another 12 percent would consider a nearby city
Majority Considering Moving Due to Pandemic; Delinquencies Remain Elevated; Rates Move Up
Majority Considering Moving Due to Pandemic; Delinquencies Remain Elevated; Rates Move Up

Biden to nominate Janet Yellen for Treasury secretary: Dow Jones

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CNBC's Wilfred Frost reports on former Federal Reserve chair Janet Yellen being nominated to Treasury Secretary in President-elect Joe Biden's cabinet, according to Dow Jones.

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Biden to nominate Janet Yellen for Treasury secretary: Dow Jones
Biden to nominate Janet Yellen for Treasury secretary: Dow Jones

The 9 a.m. Bond Report: November 23, 2020

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The 9 a.m. Bond Report

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The 9 a.m. Bond Report: November 23, 2020
The 9 a.m. Bond Report: November 23, 2020

Economists forecast a difficult first quarter in 2021 as coronavirus cases surge across U.S.

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Forecasters are predicting a roller-coaster ride for the U.S. economy as it weathers the storm of the coronavirus surge and then could potentially enjoy the tailwinds of a vaccine-led recovery. CNBC's Steve Liesman reports.

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Economists forecast a difficult first quarter in 2021 as coronavirus cases surge across U.S.
Economists forecast a difficult first quarter in 2021 as coronavirus cases surge across U.S.

Don’t Let Buyer Competition Keep You from Purchasing a Home

Don’t Let Buyer Competition Keep You from Purchasing a Home | Simplifying The Market

This year’s record-low mortgage rates sparked high demand among homebuyers. Current homeowners, however, haven’t put their houses on the market so quickly. This makes finding a home to buy today challenging for many potential buyers. With an obstacle like this, those searching for their dream homes may be pressing pause on their searches as we approach the end of the year, but that could be a big mistake for many hopeful house hunters. Here’s why.

According to the most recent Housing Trends Report from the National Association of Home Builders (NAHB):

“The length of time spent searching for a home continues to grow.”

The report indicates that 62% of buyers now spend 3 months or more looking for a home, an increase from 58% one year ago. A primary cause for the delay is the heavy competition today’s buyers face when making an offer on a home. Based on recent data from the National Association of Realtors (NAR), the average house in today’s market receives 3.4 offers before it’s sold. This means for every buyer who purchases a home, there are on average two or three buyers who have to begin their search all over again.

Compared to this time last year, the NAHB report shows that buyers are having more success finding homes in their price range. However, it also notes the percentage of buyers saying they’re getting outbid when they make an offer has jumped from 15% to 27%. Buyers are indicating that bidding wars are a major obstacle to finding their dream home (See graph below):Don’t Let Buyer Competition Keep You from Purchasing a Home | Simplifying The MarketIf this is a challenge you’re up against in your home search, you’re not alone. Feeling stuck in the process can be frustrating, but if there’s ever been a year to power through, this is the one. NAHB noted:

“Difficulties finding a home to buy will likely lead 20% of active buyers to give up until next year or later. That share is up from 15% a year earlier.”

Experts anticipate home prices will continue to rise into 2021, and the incredibly low interest rates we’ve seen this year are also forecasted to increase as the economy strengthens. Hopeful homebuyers who decide to hold off on their search until there’s less competition run the risk of finding a more expensive housing market when they start looking again. If affordability is a key motivator behind your decision to buy a home, this winter is still the best time to make it happen.

Bottom Line

Bidding wars may be one of the greatest challenges buyers face in today’s housing market, but they shouldn’t be a deal-breaker. Having the right expert on your side throughout the buying process will give you the advantage you need when it comes to finding the right home and making a competitive offer. If you’re ready to buy this winter, let’s connect to discuss how to position yourself for success.

Don’t Let Buyer Competition Keep You from Purchasing a Home
Don’t Let Buyer Competition Keep You from Purchasing a Home

1.5 MBS Coupons Are Here! What Does That Mean? Are They Cursed?

There are no significant events on the economic calendar today, and it is the last full trading day of the last full trading week before the winter holiday season. All that to say that trading will be heavily influenced by factors that transcend the simple notion of reacting to data/events in the market. This can include things like “position squaring” (buying or selling to close positions), re-positioning among money managers (adjusting bond market allocations based on shifts in investor preferences), corporate bond hedging (more on that HERE ), and more. All of the above can further be distorted by late day illiquidity as some traders will do what they need to do and punch out early. Bottom line on markets: bonds are going to do whatever they’re going to do today. It will probably look a
1.5 MBS Coupons Are Here! What Does That Mean? Are They Cursed?
1.5 MBS Coupons Are Here! What Does That Mean? Are They Cursed?

Biggest Housing Boom Since 2006 And The Truth About "All Time Low" Rates

The National Association of Realtors’ Existing Home Sales report is the broadest measure of housing market activity. It just hit a 14-year record for the 3rd month in a row. It’s not just existing homes. The new home market is crushing it as well. This week’s data on Housing Starts (the ground-breaking phase of new construction) showed another solid step back toward the boomy levels of late 2019. Builders may not be breaking ground as fast as they were a year ago (before covid), but that has everything to do with covid and nothing to do with demand. This week’s record result for builder confidence reflects that. To top it all off, this week brought another round of news articles proclaiming “all-time low” mortgage rates. But are they really? For some borrowers in some scenarios, yes. But in
Biggest Housing Boom Since 2006 And The Truth About "All Time Low" Rates
Biggest Housing Boom Since 2006 And The Truth About "All Time Low" Rates

Home Depot and Lowe's Q3 earnings prove home improvement is still hot

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The Home Depot and Lowe's reported third quarter earnings for 2020. The pandemic-driven trend of home improvement has been a bright spot for the two companies.

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Home Depot and Lowe's Q3 earnings prove home improvement is still hot
Home Depot and Lowe's Q3 earnings prove home improvement is still hot

The 9 a.m. Bond Report: November 20, 2020

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The 9 a.m. Bond Report

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The 9 a.m. Bond Report: November 20, 2020
The 9 a.m. Bond Report: November 20, 2020

Chicago Fed's Evans says he's disappointed by Treasury’s move to stop funding Fed lending programs

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Treasury Secretary Steven Mnuchin has decided to allow several of the Fed's emergency lending programs to expire on December 31. Chicago Federal Reserve President Charles Evans told CNBC that the facilities provide an important function and expressed disappointment in the Treasury Department’s decision.

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Chicago Fed's Evans says he's disappointed by Treasury’s move to stop funding Fed lending programs
Chicago Fed's Evans says he's disappointed by Treasury’s move to stop funding Fed lending programs