US Debt hits $40T and is currently increasing at $2T per year. Currently our debt service is over $1T annually (in interest), the second largest budgetary item after social security (which we pay into a specific account with payroll tax). In the previous 9 years the debt has doubled, increasing $20T. This will continue to impact the bond market negatively as it will continue to push the 10-year treasury yield up.
Mortgage Rates and the price of Mortgaged-Backed Securities (MBS) worsened this week maintaining a 2-month trendline. Rates are up 1/8% from this time last year.
Home Values – the Intercontinental Exchange (ICE) released their Home Price Index for August and it showed that values increased 0.21% during the month. Year over year values are up1.71%, the highest reading in the last 14 months.
Home Sales – the National Association of Realtors (NAR) released their pending home sales report for July which measures signed contracts on existing homes. Pending sales fell 2.3% last month and sales are down 2.2% year over year.
Mortgage Applications to purchase and refinance homes remained at the same level as last week. Year over year purchase applications are down 3% and refinance applications are down 18%.
Oil Prices rose to $88.15, up from $81.83 at the end of last week. This is 7.72% increase.