Jay The Revelator! Mortgage Purchase Applications Plunge 12% WoW As Mortgage Rates Skyrocket (Purchase Apps Down 15% Versus Same Week A Year Ago)

Jay the Revelator! He revealed that The Fed will not hesitate to keep raising rates until inflation comes down. Which means that mortgage rates may be rising.

Mortgage applications decreased 11.0 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 13, 2022.

The Refinance Index decreased 10 percent from the previous week and was 76 percent lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 12 percent from one week earlier. The unadjusted Purchase Index decreased 12 percent compared with the previous week and was 15 percent lower than the same week one year ago.

Of course, The Fed has about as much chance of slowing down energy and food prices as I do of becoming King of the United States. But Jay the Revelator may be able to cool housing demand with rising mortgage rates.

Medusa Touch! Goldman’s Blankfein Warns Of Recession, Fed Reverse Repos Soar With Inflation, Stock Futures Down While S&P 500 Forward 12-Month P/E Ratio Falls To Pre-Covid (2016) Levels

Goldman Sachs Senior Chairman Lloyd Blankfein urged companies and consumers to gird for a US recession, saying it’s a “very, very high risk.”

I am not surprised. Take a look at The Fed’s Overnight Reverse Repo operations. As inflation surged in 2021 and 2022, banks are parking more funds at The Fed. Fear?

We are seeing the S&P 500 futures down today after a nice rally on Friday. The &P 500 forward 12-month P/E ratio is back to pre-Covid, pre Federal spending surge, pre Fed monetary Stimulypto of 2016.

Goldman Sachs see the 10-year Treasury yield rising to 3.3%. That bodes ill for 30-year mortgage rates, perhaps push mortgage rates up another 40 basis points to 5.80%.

And NASDAQ is having its worst year since 2008.

Its The Medusa Touch of Big Government.

Inflation Inferno! Bidenflation Still Soaring, But Metals Dive -15% Since May 4th (Food UP 61.5% Under Biden, Gasoline UP 86%, Diesel UP 111%, Rents UP 16%)

Americans are suffering under Joe Biden. Call it Inflation Inferno!

Foodstuff are up 61.5% under Biden’s Reign of Error. Gasoline prices are up 85.8%, diesel prices are up 111%. Yet the government inflation index (aka, CPI) is up only 8.3% in April.

But while energy and food prices are soaring, the CRB Spot Metals Index has plummeted -15% since May 4 as Covid is ravaging the Chinese economy. Recession alter anyone?

And then we have soaring home prices and rents. But notice that Zillow’s Rent index is slowing down as mortgage rates soar.

We have a stalling Chinese market, down 28% since October. Is Biden President of China??

On the currency front, the Russian Ruble is soaring relative to the US Dollar while the Chinese Renminbi, the Japanese Yen and the Euro (or in this case, the Gyro) are sinking like a rock.

If I compare the Russian Ruble and Ukrainian Hryvnia, you can see Ukraine is losing the currency war with Russia.

Inflation Inferno thanks to Biden’s misguided energy executive orders and cancellation of Alaskan and Gulf of Mexico drilling leases.

Biden’s economic mismanagement team: American Gothics Treasury Secretary Janet Yellen and Fed Chair Jay Powell.

Demolition Men! Gasoline Prices UP 85% Under Biden, Mortgage Rates UP 93.4% Under Powell

I feel like we are in an economic demolition derby under Joe Biden and The Federal Reserve (with freshly reappointed Fed Jerome Powell at the helm).

Under Biden, regular gasoline prices are UP 85%. The Biden Administration recently cancelled 0il-and-gas drilling leases in Gulf of Mexico and Alaska Coast, helping to drive up gasoline prices even higher.

In the two-pronged attack out of Washington DC, The Federal Reserve is tightening their monetary policy in an effort to combat 40-year highs in inflation (caused by excessive Federal spending and Biden’s ill-advised energy policies), causing residential mortgage rates to soar 93.4% under Biden’s Reign of Error.

It is almost like the Biden Administration and The Federal Reserve are engaged in an economic demolition derby to see who can cause the most destruction to America’s middle class and lower-wage workers.

We should call the current administration and The Federal Reserve “Demolition Men.”

And here is Biden’s Disinformation Chief giving out penalties for whatever Biden doesn’t like.

1984 anyone?

Freddie Mac 30Y Mortgage Rate Skyrockets To 5.30% (Feddie And The Dreamers?)

The Freddie Mac 30-year mortgage rate is rising faster than a SpaceX moonshot!

I’m telling your now that The Fed is killing the dreams of millions of Americans by pricing them out of the housing market. Home price growth is lethal as is the increase in mortgage rates.

Do The Feddy!

April Inflation “Cools” To 8.3% YoY, But Food Up 9.4%, Gasoline Up 43.6%, Shelter Up Only 5.1%? (Real Avg Weekly Earnings At -3.4% YoY)

April’s inflation numbers are out and, at first glance, inflation seems to be cooling from 8.5% YoY in March to 8.3% YoY.

But the headline inflation numbers do not accurately reflect the pain and suffering of American households. Food is up 9.4% YoY and gasoline is up 43.6% YoY.

The strange way the BLS measure “shelter” shows that housing only grew at 5.1% YoY. That’s odd since home price growth is almost 20% YoY and rent growth is near 20%.

Runaway home prices and rents are especially painful given that inflation is destroying the purchasing power of the dollar for consumers. Real average weekly earnings YoY are at -3.4% YoY.

Hence, the purchasing power of the US Dollar keeps eroding.

Good luck out there with inflation still roaring, and food/housing/energy prices soaring.

Here is a photo of American children trying to create energy from flying a kite made from progressively devalued US currency.

Weekend Update! Mortgage Rates UP 87% Under Biden, Gasoline UP 80%, Food UP 59%, Commodities UP 63%, WTI Crude UP, Rents UP 17% YoY (Ain’t That A Kick In The … Head!)

As crooner Dean Martin once said, “Let ’em have it!” Ain’t this a kick in the … head.

Perhaps Joe Biden and Fed Chair Jay Powell are channeling Dean Martin by letting us have it.

Since Obama’s 3rd term as President (aka, Biden’s installation as President on January 20, 2021), mortgage rates have risen 87%, regular gasoline prices have risen 80%, CRB foodstuffs are up 59% and Commodities are up 63%.

And don’t forget about America’s energy life force, WTI Crude Oil. It is UP 123% under Biden.

Rents? Rising at a 16.8% rate.

Rents rising, food costs rising, energy costs rising, Biden and The Fed are taking us higher. In terms of prices and cost of living.

Bidenflation And Jobs: REAL Avg Hourly Earnings Growth Declines Further To -3% YoY, Fertilizer Prices UP 262% Under Biden

Trevor Noah was correct. EVERYTHING is more expensive under Biden. And REAL average hourly earnings YoY keeps declining.

REAL average hourly earnings YoY fell further to -3%.

Meanwhile, fertilizer prices, a key ingredient to food costs, is up 262% under Biden.

Today’s jobs report was better than expected, at 428k jobs added (versus 380k expected). Its just too bad Bidenflation is clubbing American workers to economic death.

US labor force participation actually declined in April and struggles to get back to levels pre-Covid and Trump.

Here is the jobs market data for April 2022.

Leisure and hospitality sector still has a way to go after the ill-advised government shutdowns surrounding Covid.

Oddly, there are two job openings for every unemployed person.

Here is the new version of American Gothic.

Consumer Sentiment For Home Buying Crashes To Lowest Level Since 1982 As Bear Sentiment Takes Hold In Stock Market

Rising home prices and The Fed signaling an end to the perpetual punch bowl have resulted in the University of Michigan buying conditions for houses to hit the lowest level since 1982.

While bearish sentiment in markets highest since 2009 in the stock market.

I don’t get why Biden created a “Disinformation Control Board” led by Nina Jankowicz – a disinformation spewer. We already have disinformation media outlets like CNN, MSNBC, ABC, CBS, NBC, New York Times, Washington Post, etc., so why create a Federal control board? All in time for the midyear elections!!

If this move by Biden doesn’t terrify you, then you didn’t study history.

Spot The Loser! Japan’s Yen, China’s Yuan or Russia’s Ruble (Russian Ruble Bounced Back While Yen And Yuan Have Crashed)

I hope America’s foreign policy wizards (Biden, Harris and Blinken) weren’t relying on the Russian Ruble staying pulverized, because the Ruble (relative to King Dollar) has regained all its losses.

On the other hand, the Japanese Yen and Chinese Yuan have crashed harder than Biden’s popularity.

Actually, The Atlanta Fed’s flexible price inflation rate is 25%, up from 3.90% Pre-Joe.

Perhaps Biden, Harris and Blinken think Putin is a pasta sauce.