The week in financial markets: the hikes are starting to matter

We’re not saying when we’re going higher because we don’t know, but mark your calendars for June 13, 2018 for the day the Fed flipped from stimulus to leaning against the economy. Powell’s second signal: “The U.S. economy is in great shape.”

The week in financial markets: 5-ring circus ahead

The big show is Wednesday, the Fed. It will increase the overnight cost of money from 1.75 percent to 2.00 percent, taking “prime” to 5.00 percent for the first time since 2008. The big question for housing: will long-term rates also rise 0.25 percent, putting mortgages astride 5.00 percent?

What you need to know about the big rate drop

It’s all about the economy. The euro coming unglued would not necessarily harm the U.S. economy at all. In historical experience, since these flights-to-quality push down U.S. interest rates, they often stimulate U.S. economic growth — another reason to take a drop like this and run.

The week in financial markets: two moves

Given only one soft landing on record, odds favor a different end: with the best of intentions the Fed will hike onward until we discover that a recession began four months ago.

The week in financial markets: Fed going higher, mortgages holding

Although the Fed will not accelerate its pace of tightening now, that withheld action is predicated on the expectation that the current pace of tightening will by next year slow the economy to a sustainable pace, GDP growing sub-two, monthly payroll ga…

The week in financial markets: no recognizable housing cycle

The Fed has been oh-so-gradually pushing up on the cost of money, an overnight rate, but only this week has that up-pushing (from “underneath” as traders would say) moved long-term rates, specifically the 10-year T-note, which defines mortgages and a lot else.

The week in financial markets: no recognizable housing cycle

The Fed has been oh-so-gradually pushing up on the cost of money, an overnight rate, but only this week has that up-pushing (from “underneath” as traders would say) moved long-term rates, specifically the 10-year T-note, which defines mortgages and a lot else.

Will iBuyers like Opendoor face a sudden backswing?

The newest technology-based companies trying to reinvent the housing-brokerage business are the iBuyers. All are trying to simplify the process of selling one home and buying another. All rely on faith among technologists that algorithms are clairvoyan…

Is Zillow fixed or flipped?

Is Zillow Fixed or Flipped?   By Louis S. Barnes                                                          April 16, 2018   Last week Zillow announced that it is going into the business of fixing and flipping homes. Its stock price fell 7% that day. Why the dim view in the market? We’ve all heard of flip successes — sometimes too much. Every […]

The week in financial markets: Sorting noise from substance

The Fed met this week, concluding with Chair Powell’s first press conference and new projections for the cost of money. In any other month or year or decade the Fed news would have dominated all else. This time, just an “uh-huh” from markets and back to the other jaw-dropping shows in progress …