Independent thinking for complex markets and current events
🚨BANK OF CANADA CUTS RATES🚨 Why does this matter? They did so in the face of persistent shelter inflation In Canada in March, shelter prices increased by 6.5% year-over-year, with rent increasing by 8.5% THEY CUT ANYWAY. America, your move next 🇺🇸 https://t.co/dT8nXxwplx — Amy Nixon (@texasrunnerDFW) June 5, 2024 Rates are cut 25 basis …
Home prices are dropping thanks to high mortgage rates weighing on demand. The 30-year fixed mortgage rate edged up last week, hovering above 7%. Real estate experts expect affordability to slowly improve as inventory rises and borrowing costs ease. Home prices are falling at the fastest pace in over a year, thanks to demand plunging …
Zillow’s mobile app no longer allows you to adjust the interest rate percentage to see what your estimated monthly payment would be if interest rates were lower byu/alltorntogether inREBubble Zillow’s decision to remove the direct adjustment of interest rates from the estimated monthly payment section could be seen as an attempt to prevent potential visitors …
In early March, U.S. banks faced substantial unrealized losses, ominous figures hinting at potential disaster. At the end of 2022, these losses hit $1.7 trillion, nearly matching the total equity of U.S. banks, which stood at $2.1 trillion. Rising interest rates slashed the value of assets like U.S. Treasuries and mortgage-backed securities, mainstays in bank …
https://twitter.com/futureecogold/status/1795884879890030931 Municipal Bonds and Yields: Municipal bonds (often called “munis”) are debt securities issued by states, local governments, or other public entities. They serve as a crucial financing tool for infrastructure projects, schools, hospitals, and other public needs. The yield on municipal bonds has become more attractive recently due to rising interest rates. Investors can …
The recent insights into consumer sentiment and economic outlook paint a complex picture of financial strain and diverging spending patterns across different segments of the economy. With 31% of recent home buyers citing financial challenges like budget constraints and high interest rates, it’s clear that affordability concerns are widespread and impacting major purchasing decisions. Moreover, …
US consumer borrowing has ground to a halt. Tapped out? pic.twitter.com/KH335Qw4lD — PPG (@PPGMacro) May 29, 2024 The recent data on U.S. consumer borrowing paints a concerning picture of financial stability. Delinquency rates, which Austan Goolsbee of the Chicago Federal Reserve Bank highlighted as a critical indicator, have indeed surged in early 2024. This uptick …
by confoundedinterest17 Housing in the US is simply unaffordable. Home prices in Biden’s America are up 34.5% even though mortgage rates are up 157%. Home prices in America’s 20 largest cities rose for the 13th straight month in March (according to the latest data from S&P CoreLogic – Case Shiller – data today), up 0.33% (more than the …
Yields moving higher quickly today are a reminder that interest expense is skyrocketing at a terrifying pace because rates started moving up with ever-rising debt levels over the last two years, after being suppressed by low Fed Funds rates and QE policies in the years prior. pic.twitter.com/mxEMpkotTb — David Sommers (@dgsommersmkts) May 28, 2024 The …
The buzz around the recent revelation that the U.S. government and the Federal Reserve are secretly plotting to lower interest rates just before the upcoming election has caught everyone’s attention. This maneuver has sparked debate and raised eyebrows across the nation. According to some insiders, the plan involves the Federal Reserve subtly manipulating interest rates …
Credit card companies are squeezing consumers with unprecedented interest rate hikes, thrusting millions into financial peril as expenses rise and incomes stagnate. https://www.youtube.com/watch?v=kQ_ooVuZsl4
by confoundedinterest17 Money, money! The various talking heads from The Federal Reserve keep jawboning about whether to raise rates or not. One of the major drivers of inflation is … money. M2 Money growth YoY is growing again (blue line)! And with it, inflation has been rekindled. Mortgage rates? There is a lag between M2 …
Homeownership is becoming an increasingly expensive endeavor in the United States. The average cost of homeowners insurance has soared to $1,915 per year. This figure is based on a 40-year-old homeowner with good credit and $300,000 worth of coverage. However, the cost varies significantly across states. Oklahoma, Texas, and Nebraska top the list of the …
China faces a demographic challenge with sharp declines in young adults and births. China: The number of annual births has plummeted from 18 million in 2014-15 to 10 million today pic.twitter.com/91Rmch1gJZ — Mike Zaccardi, CFA, CMT 🍖 (@MikeZaccardi) May 22, 2024
Despite ongoing consumer pessimism, spending remains surprisingly robust. Economist Joanne Hsu, director of the University of Michigan’s consumer sentiment survey, provided insights into this paradox, attributing it to a shift in consumer behavior driven by high prices and interest rates. Key Points Americans are abandoning traditional saving goals due to perceived unattainability. Aspirational goals such …
You couldn’t possibly be referring to them simply not admitting everything was on fire… h/t Calm_Improvement659
If you were holding out for lower interest rates on credits cards or mortgages, expect to only see modest relief for the remainder of the year and much of 2025. That’s because the Federal Reserve is keeping its benchmark interest rate steady to discourage borrowing, which it will do until there’s more evidence that inflation …
USPS just announced a 25% hike in shipping. That is inflationary. That is shipping and logistics… Ok Jerome Powell, what sort of BS is the @federalreserve going to shovel today? — Ann Vandersteel™️ (@annvandersteel) May 14, 2024 WASHINGTON (Reuters) – The U.S. Postal Service on Friday said it is seeking an average 25% price hike …
Prepare for a seismic shift in the gold market as the precious metal defies conventional wisdom, soaring despite the backdrop of high real rates and a robust dollar. This unexpected surge hints at a fervent bid for diversification among central banks worldwide, reshaping the landscape of global finance. Gold's rise despite high real rates and …
by Michael Fertility rates have fallen way below replacement level throughout the entire industrialized world, and this is starting to cause major problems all over the globe. Aging populations are counting on younger generations to take care of them as they get older, but younger generations are not nearly large enough to accomplish that task. …
Canadian banks are anticipating a jaw-dropping 60% hike in monthly mortgage payments for those with variable rates is nothing short of a financial catastrophe waiting to happen. With housing costs already soaring, this sudden and substantial increase in mortgage payments is a recipe for disaster, putting countless Canadian families at risk of losing their homes. …
According to Bloomberg data, 10 out of 11 major central banks are expected to slash rates in the second half of this year, the most in 16 years. The list of the 11 countries includes the United States, India, New Zealand, the United Kingdom, Canada, Australia, Norway, the Eurozone, Sweden, Switzerland, and Japan. As shown …
Americans think Mortgage Rates will Hit 10%. They’re currently at 7.75%. In 2020 rates were 3%. Let’s look at payments for various combinations at various prices: ________________________________ __3% Rate__8% Rate__10% Rate 2020 Median House Price $320,000*_____$1,079____$1,878___$2,247 2024 Median House Price $420,000*_____$1,417____$2,465___$2,949 * Assumes 20% down / Excludes Insurance, other …
Americans are in limbo about where the housing market could go next, but they are resolute about the conditions for buying right now. Nearly 80% of Americans think it’s a bad time to buy a house, according to the Fannie Mae Home Purchase Sentiment Index (HPSI), a survey gauging homebuying and selling confidence. The index …
In the cacophony of daily news cycles, there exists a profound yet often unspoken crisis brewing within the heart of the American economy: prime-age men are quietly slipping away from the labor force, their departure unnoticed amidst the clamor of political debates and economic analyses. What’s truly startling is not just the phenomenon itself, but …
by confoundedinterest17 The Fed will likely pause rate cuts/increases when The Fed reveals their plans today. Breaking: Federal Reserve officials are likely to hold interest rates steady at 5.25-5.5%—a 20-year peak—for a 6th consecutive meeting. With inflation still high, rate cuts seem off the table for now. Rate decision at 2pm Washington time. The Street seems aligned. …
In a delicate balancing act, the Federal Reserve chose to keep its benchmark interest rate steady, resisting the pressure to cut rates as the economy faces cooling growth alongside persistent inflationary pressures. As households and businesses await the central bank’s decision, the stakes are high, with implications for borrowing costs, economic activity, and the trajectory …
Central banks around are now cutting rates rapidly ht g.o.t. pic.twitter.com/WET0DuptRS — Win Smart, CFA (@WinfieldSmart) April 30, 2024
Economic headwinds persist as 43% of small businesses struggle to pay rent, while charge-off rates on commercial real estate loans surge to nearly twice their 2020 peak levels. This trend, exacerbated by elevated interest rates and depressed asset valuations, underscores ongoing challenges in the real estate market and broader economic conditions. BREAKING: 43% of small …
