Vital Statistics:
Stocks are higher this morning on no real news. Bonds and MBS are down.
A trade deal with the UK has not impressed the bond market. The Fed Funds futures still see a limited chance of a rate cut in June.
Nonfarm productivity decreased 0.8% in the first quarter as output decreased 0.3% and hours worked increased 0.6%. On a YOY basis, productivity was still positive. Manufacturing productivity was 4.5%, while services productivity fell.
Unit labor costs rose 5.7% as compensation rose 5.8% and productivity fell 0.8%.
Mortgage credit availability was unchanged in April, according to the MBA. “Credit availability was unchanged in April following a sizable increase in March,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Overall levels of credit supply remain tight but have generally grown since 2023, as lenders continue to offer cash-out refinance loan programs as well as jumbo and non-QM loans. Lenders remain positioned for potential refinance opportunities as mortgage rates continue to fluctuate.”
For-sale inventory is up 31% on a YOY basis, according to NAR. That said, supply remains below pre-pandemic levels, especially in the Midwest and Northeast. Median listing prices are up 0.9% YOY and days on market has increased by 4 days.
“The spring is in full bloom and the housing market is following suit. The number of homes for sale reached the highest level since 2019 last week and new listings reached their highest level since mid-2022. Ample for-sale inventory has not been fully embraced by buyers who continue to face challenging affordability conditions. Sellers are bringing down asking prices to try to entice buyers, pushing the share of homes with a price reduction 0.6 percentage points higher compared to last year.”
