$TRUMP Coin is currently priced at $13.00, with 200M coins in circulation. Since its launch, right before inauguration, the Trump team has profited over $300M. With an estimated 800M coins left to release there is a potential of over $10B in profit. What’s the value in this coin? Like all meme coins, the value is essentially whatever other people think it’s worth. With this coin, the top 220 holders will get to join the US President for the gala dinner. Is this legal? Is this an emolument? Certainly, political donors are invited to campaign dinners, but this currency has no limit to contribution. There is also no restriction on foreign ‘contributors.’
Mortgage Rates increased this week as the price of Mortgaged-Backed Securities (MBS) declined. This continues a 30-day pattern of slow erosion in MBS pricing. Rates are unchanged from this time last year.
Consumer Debt – household debt hits $18.2 T. Mortgage Debt – $13T, Auto Debt $1.6T, Student Debt $1.6T, and Credit Card Debt $1.2T. While Buy Now Pay Later is not reported to credit agencies, it is estimated in the $300B and rising.
New Home Sales – Signed contracts on new homes rose 10.9% to a 743,000-unit annualized pace, stronger than estimates and the highest pace since Feb. 2022. The median price of a new home is now $407,000, down 2% year over year. There continues to be strong demand for entry level homes.
Rents – Single-family rent prices increased 2.9% year over year in March, unchanged from the previous report. Cotality’s rent index numbers remain lower than the 4% increase in the CPI and PCE inflation reports.
Consumer Sentiment – the University of Michigan Report that tracks Consumer Sentiment fell to 50.8% in May, the second lowest reading since they have been tracking this metric back in 1952. Over 60% of respondents are expecting more unemployment over the next year, the most since 2008-09.
Mortgage Application to purchase homes fell 5% last week but remain up 13% year over year. Refinances also declined 5% but are up 27% year over year. Refinances comprise 36% of applications.