2020 was an up and down year for manufacturing across the globe. The strong economy at the start of 2020 propelled manufacturing (especially in the U.S.), but the COVID pandemic slowed it to crawl in the middle of the year. The good news is recently released data shows factories in Asia and Europe increased their output as 2020 drew to a close (Wall Street Journal)

Surveys of purchasing managers at factories across Asia and Europe that were released Monday recorded strong rises in activity during December, with Taiwan’s manufacturing sector recording its strongest month in almost a decade

The results of a similar survey of U.S. manufacturers will be released later today. We will see if American manufacturing is also seeing a comeback. Expectations do point to a stronger increase in activity

We are starting 2021 off right! Check out my latest morning newsletter that focuses on real estate and economics. The latest issue is available here and if you would like to subscribe to start getting the latest issue tomorrow you can sign up here

Happy Monday!  We are 14 days away from the first bank holiday of the year (MLK Day)

Global stocks advanced buoyed by the optimism that the world economy will heal as vaccination programs get rolled out.  The Nikkei 225 slipped 0.7% in Tokyo, but the Hang Seng rose 0.9% and the Kospi Composite rallied 2.5% in Seoul (Barrons)

In the U.S., futures rose on the first major trading day of 2021 on hopes that continued government stimulus and the rollout of coronavirus vaccines will bode well for equities.  Futures tied to the S&P 500 rose 0.6% while contracts linked to the Dow Jones Industrial Average gained 0.5% (Wall Street Journal)

Quote of the Day

“Don’t wait to buy real estate. Buy real estate and wait.”

– Will Rogers

A lot has to happen to make 30-year mortgage rates possible. If you want to understand what each player in the process does, and what risks they take than the Wall Street Journal has got you covered (Wall Street Journal)

One major reason is the U.S. housing market’s unique system of taxpayer support, via the government-sponsored enterprises. Fannie Mae and Freddie Mac buy loans from originators, guarantee them and resell them to investors as agency mortgage securities. So in turn, many originators’ economics are ultimately driven by the volume of loans they produce and sell via Fannie or Freddie. This business model also avoids lending risk and requires less capital, making it appealing to investors.

Pretty much every year since 2006 I have started a blog and by mid-January of each year I would lose interest and completely forget about it.  However, this year is going to be different!!  I promise I will at least make it to February before quitting (jk) 

Now what I can promise is It’s not going to be fancy, in fact, it’s going to be a throwback to many of the great political blogs I followed back in the mid-aughts when blogging really took off.  Not a lot of photos just a quick analysis of the big stories as they break each and every day. 

My goal with the blog is not unlike that with the newsletter.  I am going to be blogging about the top stories that impact real estate, mortgage markets, and the economy as a whole.  Of course, I will also be throwing in some fun stories that have nothing to do with economics or real estate because it’s my blog and I make the rules.  Could some politics seep in… ya never know.

I’m looking forward to a great year and many more to come…