Vital Statistics:
| Last | Change | |
| S&P futures | 2823 | -23.1 |
| Oil (WTI) | 28.79 | 1.29 |
| 10 year government bond yield | 0.60% | |
| 30 year fixed rate mortgage | 3.36% |
Stocks are lower this morning after a lousy retail sales number. Bonds and MBS are up.
Retail sales fell 16.4% MOM and 21.6% YOY, according to Census. Obviously these are unprecedented numbers, never seen before. Apparel, home furnishings, and electronics were down the most.
Joe Biden would support rent forgiveness if elected. In other words, if you missed rent payments due to COVID, you’ll never have to pay them back. This is just election pandering – the chance of this getting through Congress is pretty much zero. I guess it is a way to encourage the Bernie Sanders supporters to come out and vote for him on election day.
Meanwhile, the FHFA is extending its foreclosures and eviction moratorium until June 30.
Interesting data point: Home buyer demand is higher than it was pre-COVID 19. Meanwhile supply is down 25%. Big open floor plans are out, home offices are in. “Pre-COVID people wanted a beautiful open floor plan. After a few months in quarantine, buyers want quiet spaces where they can actually get away from everyone else and dedicated space for school and work.”
JP Morgan and American Homes 4 Rent are joining together to build suburban homes. FWIW, COVID-19 might be what makes the white picket fence cool again.
The Daily Tearsheet 