"This is what a bear market feels like." - Sara
"This is what a bear market feels like...so far!" - Homer
Just a few things to clear out, ahead of the most important day in the history of the word tomorrow….
If I’m reading this right, traders think there is (as of 4:09pm EST) a 95% chance of a 75 basis point hike on Wednesday.
One of the only people worth a damn on the FOMC this century is Tom Hoenig, and he was an econ pariah because of his relative courage:
Today’s CNBC drinking phrase was “Fed Credibility”
Check this out: Marin median home price breaks $2M barrier
Gloria Othon is feeling the shifting market first hand. Othon, 61, poured $115,000 into a year-long project to remodel the bathrooms and kitchen of her San Jose home, redo the landscaping, buy a new water heater and other appliances, and replace the roof. She hoped the renovations would bump up the sale price.
Othon and her husband bought the house in the Berryessa neighborhood in 1998 for $350,000, but their children are grown now and they no longer need so much space.
Othon listed the house last week for $1.788 million, hoping offers would pour in. But so far, it's been crickets. She worries she waited too long to take advantage of the hot housing market. And if the house doesn't sell, she and her husband can't afford to downsize by buying a smaller house or a condo.
"I'm really scared," she said. "I feel like I might have missed it, and what do I do now?"
Hang on - $350k plus $115k = $465K. She’s apparently asking $1.323 million over what she has into it (for argument’s sake). What does she owe on the house? How much equity has she sucked out over the years? Obvious (unasked) questions.
“I've been a realtor for 30 years so I've been through several ups and downs. I've really never seen a market change as quickly as this one did.”
During the last forty-four years, my days have begun and ended with the mortgage market. Four painful moments stand out. Today makes five…The CPI news this morning was so awful that it changed the bond market’s view of Fed trajectory, and the weakest sector broke. In bond jargon, MBS went “no-bid.” No buyers for MBS. Then a few posted prices beyond borrower demand, not wanting to buy except at penalty prices. Overnight the retail consequence has been a leap from roughly 5.50% to 6.00% for low-fee 30-fixed loans.
+- Depending on the points apparently…
Omg, $1.78 million for a house in Berryessa? That used to be a very middle class part of San Jose.
Berryessa sounds exactly like Toronto and its suburban areas