Stocks are higher this morning on continued optimism for a deal with Iran. Bonds and MBS are up.
Home prices rose 0.6% on a quarterly basis and 1.9% on an annual basis according to the Clear Capital Home Data Index. The quarterly number rebounded from a decline in March and indicates that the real estate market could be rebounding. The hip to be square trade continues, with the Northeast and Midwest seeing the fastest growth while the South and West lag. The top spots for growth were Rochester NY, Providence RI and Birmingham.
The private sector added 109,000 jobs in April according to the ADP Employment Survey. This was above the 85,000 consensus estimate and the 63,000 estimate for Friday’s jobs report. “Small and large employers are hiring, but we’re seeing softness in the middle,” said Dr. Nela Richardson, chief economist, ADP. “Large companies have resources to deploy, and small ones are the most nimble, both important advantages in a complex labor environment.”
Education / health services added 61,000 jobs while trade / transportation and utilities added 25,000. Professional / business services lost 8,000. Pay growth for job stayers moderated to 4.4%. Pay growth for job changers came in at 6.6%.
UWM reported earnings of $0.08 per share for the fourth quarter and $0.12 for the full year. Origination volume rose 28% YOY to $49.6 billion. Gain on sale margins rose to 122 basis points. UWM is bringing servicing in-house for cost and recapture reasons and launched a tender offer for Two Harbors. CEO Mat Ishbia is optimistic about the market in general: We’re very optimistic on the mortgage and housing industry. There’s a big tailwind behind all of us. A lot of it’s tied to the market, but the administration HUD, FHFA, Treasury, all these leaders in the country and in our industry are trying to find a way to help affordability and lowering rates to help more consumers.” The conference call was brief and the company took no questions from the Street.
Announced job cuts rose 38% in April according to the Challenger and Gray Job Cut report. “Technology companies continue to announce large-scale cuts and are leading all industries in layoff announcements. They are also often citing AI spend and innovation. Regardless of whether individual jobs are being replaced by AI, the money for those roles is,” said Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas.
