When banks and investors need to borrow cash on a short-term basis (e.g., overnight), other banks make their “excess” reserves available in multi-billion-dollar electronic transactions that take place late in the trading day. In today’s interest rate world, the borrower would pay approximately 0.005% per day ($50,000 per day per $1 billion borrowed). When the regular flow of “overnight” money (about $75 billion a day)disappeared on 9/16/19, lenders exploited the shortfall and the daily rate that was charged increased “fivefold,” i.e., a cost of $250,000 per day per $1 billion borrowed (source: Federal Reserve).
*The views, articles, postings and other information listed on this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation.
ALMOST A MILLION BUCKS – 10/16/19
UncategorizedIf the nation’s aggregate net worth of $113.5 trillion was spread equally across all 122.5 million US households, every American household would be worth $927,000 (source: Federal Reserve).
*The views, articles, postings and other information listed on this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation.
DISAGREEMENT – 10/12/19
Uncategorized*The views, articles, postings and other information listed on this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation.
TWELVE-YEAR HIGH – 10/9/19
UncategorizedNew residential construction in the US totaled 121,100 housing units in August 2019, its highest total recorded since August 2007. The total includes 82,600 single family homes, 1,800 apartment buildings with 2-4 units and 36,700 apartment buildings with 5 or more units (source: Census Bureau).
*The views, articles, postings and other information listed on this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation.
BORROWERS WERE GOUGED – 10/8/19
UncategorizedWhen banks and investors need to borrow cash on a short-term basis (e.g., overnight), other banks make their “excess” reserves available in multi-billion-dollar electronic transactions that take place late in the trading day. In today’s interest rate world, the borrower would pay approximately 0.005% per day ($50,000 per day per $1 billion borrowed). When the regular flow of “overnight” money (about $75 billion a day)disappeared on 9/16/19, lenders exploited the shortfall and the daily rate that was charged increased “fivefold,” i.e., a cost of $250,000 per day per $1 billion borrowed (source: Federal Reserve).
*The views, articles, postings and other information listed on this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation.
SLOWING ECONOMY – 10/7/19
UncategorizedMOST OF THEM – 10/4/19
UncategorizedThe sales of existing homes account for 90% of all homes sales in the United States (source: Treasury Department).
*The views, articles, postings and other information listed on this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation.
HOW DID YOU DO? – 10/3/19
UncategorizedAn average single-family home in America increased in value by +5.0% over the 1-year period from 6/30/18 to 6/30/19, by +5.9% per year over the last 5 years from 6/30/14 to 6/30/19, and by +3.6% per year over the last 10 years from 6/30/09 to 6/30/19 (source: Federal Housing Finance Agency).
*The views, articles, postings and other information listed on this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation.
FANNIE AND FREDDIE – 10/2/19
Uncategorized*The views, articles, postings and other information listed on this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation.
COULD IT HAPPEN? – 9/24/19
UncategorizedThe wealthiest one-tenth of 1% of US households (top 122,000 households) are estimated to own 20% of total US wealth, i.e., 20% of $109 trillion. An annual 1% “wealth tax” levied on this group would generate $218 billion per year in tax revenue (source: The Brookings Institute).
*The views, articles, postings and other information listed on this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation.
SPOOKY NUMBERS – 9/18/19
UncategorizedThe Congressional Budget Office estimated on 8/21/19 that over the next 10 fiscal years(2020-2029), the US government will take in $45.6 trillion of tax receipts versus $57.8 trillion of outlays, resulting in a $12.2 trillion deficit, or an average annual deficit of $1.22 trillion. The United States has produced annual deficits of at least $1.22 trillion just 3 times in our nation’s history – 2009-2010-2011 (source: CBO).
*The views, articles, postings and other information listed on this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation.