Jumping Mortgage Rates Cloud ‘Risk Appetite’ Return - By Jody Shenn - … “If not reversed, the spike in mortgage rates has the potential to derail the two-month-old rebound in risk appetite by negatively affecting not just the consumer, but also financial institutions that are relying on elevated mortgage origination for earnings,” the analysts wrote. … -   Bloomberg

————

Florida and California are Night and Day - California’s excess resale supply (homes for sale) is starting to come back in balance, while Florida’s supply is completely out of whack. At 10.2 months of supply, the U.S. still has 42% more inventory than normal, but supply is nearing historical norms in California, while supply is often 2-3X the norm in Florida. - much more at John Burns RE Consulting

————
A Tale of Two Markets: Red Hot for First-Timers, But the HENRYs Are in Trouble - By Lew Sichelman - …  to attract buyers who can obtain financing at rates even close to what first-timers are paying. This includes rich people and also a category of borrowers called the HENRYs (High-Earning but Not Yet Rich). - National Mortgage News

————

A ‘HOMES RUN’ IN THE MAKING - The number of Americans signing contracts to buy previously owned homes climbed 6.7 percent in April, the fourth increase in five months, as lower prices attracted buyers.  The index gain in pending home resales was the biggest in seven years and followed a 3.2 percent increase in March, the National Association of Realtors said. - NY Post
————

Rising government bond rates prove policy works - By Martin Wolf - Is the US (and a number of other high-income countries) on the road to fiscal Armageddon? Are recent jumps in government bond rates proof that investors are worried about fiscal prospects? My answers to these questions are: No and No. - thoughtful - FT.com