Morning Report: Spring Selling Season slows down dramatically

Vital Statistics:

 

Last Change
S&P futures 2359 -52.4
Oil (WTI) 21.91 2.39
10 year government bond yield 1.14%
30 year fixed rate mortgage 3.58%

 

Stocks are lower this morning as volatility continues. Bonds and MBS are down.

 

Late yesterday, the Fed announced measures to support short-term money market mutual funds. Global central banks have been cutting rates and conducting currency interventions.

 

Initial Jobless Claims came in at 288k last week, a big increase but hardly recessionary. The big tell will what happens next week, which will include people who were laid off this week.

 

The government has imposed a 60 day moratorium on foreclosures and evictions.

 

Redfin has suspended its iBuying program. This was the program where Redfin would buy homes directly from sellers and handle the sale. I have to imagine Zillow won’t be far behind. While the Fed is pulling out all the stops to keep the financial markets functioning, if lines of credit are at risk of getting pulled, this strategy absolutely does not work.

 

The NYSE has shut down floor operations and is going all electronic in response to the virus. To be honest, I am surprised at how well the stock market has functioned during this whole sell-off. I thought the algorithmic traders would disappear with this volatility. So far, so good.

 

The Spring Selling Season it taking a hiatus due to Coronavirus. After a 27% increase in traffic, it was flat over the past week. Redfin has canceled open houses, and at some point appraisals will become an issue if appraisers don’t want to go into homes.

 

Dismayed by the lack of inventory at your local supermarket? Don’t be.

 

 

 

 

Author: Brent Nyitray

In the physical sciences, knowledge is cumulative. In the financial markets, it is cyclical

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