|10 year government bond yield||0.78%|
|30 year fixed rate mortgage||3.23%|
Stocks are lower this morning on no real news. Bonds and MBS are down.
Initial jobless claims fell to 1.9 million last week. Separately, Challenger and Gray reported that 397,000 job cuts were announced last month.
Homebuilder Hovnanian reported a 22% increase in revenues for the second quarter. The cancellation rate ticked up slightly, but it looks like the homebuilders are seeing a recovery already. We should hear from Lennar and KB Home in a week or two.
Productivity was revised upward in the first quarter to -0.9% and unit labor costs were revised upward to 5.1%.
It looks like June rental payments are falling a touch, after holding up reasonably well in April and May. According to a survey, 37% of all New York City renters don’t have the money to pay June rent.
Another sign the recovery is upon us: Investors are starting to pick at bank stocks. “There’s optimism things will be better a year from now. And because banks have trailed just about everything else in the market they’re being dragged up,” said Rick Meckler, partner at Cherry Lane Investments, in New Vernon, New Jersey.