Morning Report: A record number of homeowners are looking to relocate

Vital Statistics:

 

Last Change
S&P futures 3069 -13.1
Oil (WTI) 37.64 -0.19
10 year government bond yield 0.66%
30 year fixed rate mortgage 3.16%

 

Stocks are lower this morning on fears of a COVID-19 resurgence. Bonds and MBS are flat.

 

Personal Incomes fell 4.2% in May, as government stimulus checks were offset by wage declines from furloughed workers. Consumer spending rose 8.2% MOM, led by a big uptick in paper products.

 

Forbearances ticked up last week according to Black Knight’s forbearance report. There were 4.68 million homeowners in forbearance, or 8.8%, an uptick of 79,000 or 0.1%.

 

The migration out of urban areas is real. A record 27% of homebuyers are looking to relocate from places like San Francisco and Seattle to less dense and cheaper locations. “While there has been a huge increase in the number of people looking online at homes in small towns, the long-term impact of the pandemic on people actually moving from one part of the country to another remains to be seen,” said Redfin economist Taylor Marr. “People are starting to take the plunge and move away from big, expensive cities, though most of them were probably already considering a lifestyle change. The pandemic and the work-from-home opportunities that come with it is accelerating migration patterns that were already in place toward relatively affordable parts of the country. But for many people, the lure of large homes in wide open spaces will be a passing dream fueled by coronavirus-induced isolation. ”

Author: Brent Nyitray

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

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