There are no fundamentals today but yesterday’s H.3 report from the Federal Reserve is of some interest. It shows Monetary Base over $3.040 trillion. Monetary base is high-powered money because it stands ready to be spent or loaned. Monetary base consists of currency either in circulation or in bank vaults plus excess bank reserves held by the Fed. Excess reserves at the Fed are $1.769 trillion. Both Monetary Base and Excess Reserves are at all-time highs.
The mortgage business is an example of government policies at cross-purposes: 1) pump up money supply and 2) tighten lending standards.