06 Oct Appreciation is Up but the Fed’s Outlook is Down
More good news this morning for home appreciation after Core Logic massively underestimated last months appreciation. Core Logic estimated appreciation at .1% while actual appreciation numbers came in 10x higher at 1%.
Yesterday, Fed Chairman Powell talked about how the lack of a stimulus plan in the near future could have a “tragic” impact on our recovering economy. He specifically claimed we will face “typical recessionary dynamics, as weakness feeds on weakness,” if we don’t not soon come up with a plan of action.
Mortgage backed securities are flat this morning as they continue to be squoze between their 25 and 50 day moving averages. Because of the large amount of room to the downside, we are holding a locking bias.