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Pending Home Sales Fall

For the 6th straight month pending sales have taken a tumble. The National Association of Realtors index fell to 73.9 for November which is apparently the lowest reading since the index was started in 2001 (except a couple pandemic months).

Homes sales have fallen 37.8% year over year–of course they have–doubling interest rates will do that.

Regardless of falling homes sales interest rates are up 3 basis points to 3.88% even though the 10 year treasury yield traded around 3.80% earlier today. Income issues are off a penny or two on average.

I do note that the Federal Agricultural Mortgage 5.70% perpetual (AGM-D) is off 97 cents at $20.81 for a current yield of 6.85% and a yield to 1st optional redemption of almost 18%. While these issues are not rated AGM is perceived as a relatively solid company. Here are their most recent financials.

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