Not Big Mac! Freddie Mac House Price Index Increased in December By Up 4.0% YoY (Austin Tx Is Down -12.7% From Peak)

No, Freddie Mac is not a new cheeseburger from McDonald’s. Freddie Mac is a government sponsored enterprised (GSE) that purchases residential mortgages from lenders and assists in the bundling of mortgages into mortgage-backed securities (MBS). They also monitor home prices.

Freddie Mac reported that its “National” Home Price Index (FMHPI) increased 0.54% month-over-month on a seasonally adjusted (SA) basis in December. On a year-over-year basis, the National FMHPI was up 4.0% in December, up from up 3.9% YoY in November. The YoY increase peaked at 19.0% in July 2021, and for this cycle, bottomed at up 0.9% YoY in May 2023.

But let’s look at the dark side of home prices, which is price declines. Led by Communist enclaved Austin Texas, down -12.7% from peak. The next six cities are all in Florida.

I was watching Varney and Company on Fox Business and it dawned on me that Jonathan Hoenig from Capitalist Pig needs to lay off the caffeine!

Maybe Freddie Mac should partner with McDonald’s. After all, clumsy shooter Angel Reese from WNBA’s Chicago Sky just signed with McDonald’s.

US Pending Home Sales Plunged -5.5% MoM In December

Pending home sales in the US plunged 5.5% MoM in December (vs 0.0% exp and below all estimates), dragging the total sales down 2.9% YoY (vs +4.2% exp).

This is the lowest December print since records began (in 2000).

Let’s see if Trump can loosen up regulations on mortgage lending and housing. Hopefully, the new HUD Secretary (Scott Turner) will be an upgrade over DofHealth’s Rachel Levine.

M1 Money UP 365% Since Covid, M2 Money UP 40%, Federal Spending UP 45% (Is Chuck Schumer REALLY Boss Tweed?)

Wow. Money printing by The Federal Reserve went will after the Covid outbreak in early 2020. So did Federal spending. Unfortunately, politicians are addicted to Federal spending. And Senators like Chuck Schumer (D-NY) and Adam Schiff (D-CA) are trying to obstruct any spending cuts by Trump and his DOGE.

Well, M1 Money printing is UP 365% since Covid while M2 Money printing is UP 40%.

Federal current expenditures are up 45% since the Covid outbreak. But were never returned to normal spending levels.

New York senator Chuck Schumer is opposed to Trump’s efforts to cut Federal spending. Is Senator Schumer REALLY the political boss of Tammany Hall, the Democratic Party’s political machine that played a major role in the politics of 19th-century New York City and State?

New Home Sales Increase to 698,000 Annual Rate in December (Despite Mortgage Rates Being Around 7%)

Home, home on the range … Where the realtors and mortgage lenders play.

Sales of new US homes ended 2024 on a high note in December as customers took advantage of incentives from builders, leading to a second straight year of increased purchases.

For the full year, customers purchased 683,000 homes, up about 2.5% from 2023’s total.

Sales of new single-family houses in December 2024 were at a seasonally adjusted annual rate of 698,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 3.6 percent above the revised November rate of 674,000 and is 6.7 percent above the December 2023 estimate of 654,000.

My Mortgage Market Was Gone! Mortgage Purchase Applications Rise 7% Since Previous Week, But Refi Applications Fall 3%

As The Pretenders sang, “My City Was Gone.” That song was about Akron, Ohio. But it applies to the US Mortgage Market under Biden/Harris. The question is whether Trump’s deregulation plans can return to its former glory.

Mortgage applications increased 0.1 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending January 17, 2025.

The Market Composite Index, a measure of mortgage loan application volume, increased 0.1 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 3 percent compared with the previous week. The seasonally adjusted Purchase Index increased 1 percent from one week earlier. The unadjusted Purchase Index increased 7 percent compared with the previous week and was 2 percent higher than the same week one year ago.

The Refinance Index decreased 3 percent from the previous week and was 42 percent higher than the same week one year ago.

The Pretenders’ lead singer Chrissie Hynde likely would have made a better Federal Reserve Chair and Treasury Secretary than Janet Yellen.

Left Behind! Aka, The Mess Biden/Harris Left Behind: 36+ Trillion In Debt, Massive Budget Deficits, Declining Real Wages (And $226 Trillion In Unfunded Liabilities, 6 Times The Federal Debt)

I can’t wait for Billions Biden, The DC parasite who selectively shoves billions of dollars to his friends and nothing for the others. For example, bailing out the LA wildfires but stiffing the people of North Carolina and Florida for hurricane/flood damage. And funding Ukraine while real wage growth is negative. And heavy investment in green energy, the ultimate fool’s errand.

Let’s start with declining real wage growth under Biden/Harris (blue line). Meanwhile, Federal government spending (dashed green line) continues to grow causing inflation.

Meanwhile, Biden/Harris and Congress left Trump with the largest budget deficit in history. Like endlessly funding Ukraine and illegal immigration.

Leaving American taxpayers with growing Federal debt of $36+ trillion. And unfunded liabilities of $226 trillion, over 6 times the national debt.

The US will hit its debt ceiling the day after President Trump is inaugurated, and Yellen said that the Treasury will launch “extraordinary measures” to stave off the threat of a national default. Bear in mind, Janet Yellen personally oversaw total debt increase by a staggering $15 trillion. Way to go, Janet!

I wonder how Trump’s Treasury secretary will handle this? At least better than Janet Yellen, I hope!

Shocker! Under Biden, Home Prices Rose 38.3% While US Population Rose 3.3% (Housing Starts 5+ Unit Multifamily Surged The Most Since 2016)

I remember giving a speech to Federal regulators in Washington DC and discussing the rise of housing rentership in the US. I said the US is veering towards a renter nation.

Today’s housing starts report revealed the biggest MoM jump in multi-family starts since 2016, and the highest SAAR for ‘renter nation’ since Dec 2023.

On a year-over-year basis, 5+ unit (multifamily) starts are are up while 1-unit housing starts are negative.

Unfortunately, the percentage change on a year-over-year basis were negative. -2.6% for 1-unit starts and -27% for 5+ unit (multifamily) starts.

Under Biden, home prices rose a whopping 38.3% while population (if you believe the US Census Bureau) rose 3.3%.

Shocker!

Mortgage Rates And Jobs Reports: Mortgage Rates Rise Above 7% On Surprise Jobs Report

The latest jobs report was like the Cornell Hurd song, “It’s just the whiskey talking.” Except that this time it’s just the Biden Administration talking … and their jobs reports have been corrected/revised repeatedly.

The latest jobs report saw Nonfarm Payrolls rise by 256k and mortgage rates (conforming) rose above 7%. But what happens when the recent jobs report is revised downwards?

I don’t care what Biden did as President. Now Trump can do it correctly.

Brace For Impact! Great Jobs Report Likely To Be Revised Downwards … A Lot!

Time to take a break from the Gavin Newsom/Karen Bass LA fire fiasco. And refocus on the Biden/Harris employment fiasco.

After a year of ‘robust’ job growth private payrolls were subsequently revised by nearly 1 MILLION for April 2023 – March 2024.

The most recent data points to additional huge revisions in Q2 and Q3.

In a normal world, Newsom and Bass would be toast politically. But this is far left Commiefornia!

Off To A Bad Start! Mortgage Purchase Applications Declined 7% Since Last Week, Down 15% Since Same Week Last Year

Mortgage applications decreased 3.7 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending January 3, 2025. This week’s results include an adjustment for the New Year’s holiday.

The Market Composite Index, a measure of mortgage loan application volume, decreased 3.7 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 47 percent compared with the previous week. The seasonally adjusted Purchase Index decreased 7 percent from one week earlier. The unadjusted Purchase Index increased 43 percent compared with the previous week and was 15 percent lower than the same week one year ago.

Purchase application activity is up about 2% from the lows in late October 2023 and is now 15% below the lowest levels during the housing bust.

The Refinance Index increased 2 percent from the previous week and was 6 percent lower than the same week one year ago.

Then we have this diddy from The Epoch Times where a mortgage company allegedly provided a loan to a household that had 33 debts in collection. Hey, I thought under Senator Elizabeth Warren’s brainchild these reckless lending practices were over!

One will be gone on January 20 and I wish the other one would be gone too.