Financial News Update

Brett Stefanski, who is our SVP of Finance and one brilliant man, has heard from his experts in the world of bond finance that the 10-year Treasury will hit 1.00% in yield before we hit 2.00% in yield. WOW!
· The Producer Price Index surged up .7% last month and wholesale prices are up 8.3% year over year.
· The Core PPI rose 0.6% in August and core prices are up 6.7% year over year.
· The Fed still believes inflation is transitory or temporary, but wages are rising too and typically wage increases are much “stickier” in that people won’t accept a pay cut. According to the Atlanta Fed their Wage Tracker Index shows wages up 3.9% year over year as of August, the highest reading since 2008.
· There are only 1.6 million borrowers in forbearance, or 3.1% of all mortgage borrowers, still with about 25% of them making their payments every month. According to Black Knight 98% of those borrowers in forbearance have at least 10% equity in their homes. Thus, there might be 2% of the 1.6 million or 32k borrowers who are in danger of a distressed sale. According to NAR our country is short 5.5 million homes. Thus, I think the U.S. real estate market would welcome an additional 32k homes for sale.