Piggybacking off of yesterday a little bit, NAR today reported that they also calculate that Pending Home Sales dropped 2.3% last month. That brings the year-over-year rate to a -2.2% units under contract. I spoke with two Realtors yesterday that I’ve known for a very long time and both said they are exiting the industry. Don’t to that; 2.2% doesn’t need to be career ending.
On to mortgages, the massive supply of corporate bonds that’ve been issued to build these massive data centers that everybody wants to use but nobody wants in their community is contributing to the increase in interest rates across the board. The Treasury reported today that their own 30 Year Note pays the highest yield it has in over 20 years. And so that they don’t need to pay more interest out to the suckers like me who buy bonds, the Treasury is ramping up their own repurchase program to gobble up some supply and drive rates lower. Music to my ears!
