Demand
The mid-November Mortgage Application Index pushed into the October demand of 208 points. This lift is usually not seen until post Thanksgiving. The improvement could be due to the late timing of the holiday or could be an early indicator of increased demand going forward.
Mortgage Application Index
Supply
The California Zillow listings declined by 5.8% week over week (2,899 homes), nearly doubling last week's drop. The region with the largest fall was the Bay Area with 8.8% fewer listings (741 homes), while the valley regions declined by roughly 4.7% (768 homes). These numbers are earlier than official reports and are signaling sustained increase in home buying activity.
Developing Issues
10y yields and Mortgage rates are showing concerns for inflation and continued rate reductions. This week's reports will be focused on employment. If the labor market shows signs of weakness, interest rates will have an easier path lower; we won't see those reports till Friday.
