And the hits just keep on coming for the US housing sector. Three months after hitting the highest level in 14 years, on Thursday mortgage rates hit a fresh post-financial crisis high when they topped 6%, a jolt to home buyers who last year were paying less than half that.
Expectations for a 0.1% MoM drop in CPI has set the squeeze-algos on fire in recent days as the small drop signals ‘peak inflation’ and goldilocks and a unicorn-filled Fed will step back and declare victory (with a lag). Short-term interest-rates – however – have not been buying that dovish story, so how the market reacts to today’s print will be fascinating given the technical background of extreme negative delta and positioning, and now momentum. The market was pricing in a 90% chance of a 75bps hike by The Fed next week ahead of the CPI print.
Newsfeed: US Consumer Prices Blow Away Expectations, Rise For 27th Straight Month Read More »
The problem with an energy crisis is that it’s actually an everything crisis. In a world where virtually every industry relies on energy in some form, runaway inflation is an inevitability. This phenomenon is not news – you’ve been experiencing it for the better part of two years now. But while global governments are using every tool in their kits to curb the rising inflation rates, there’s far less they can do about the coming food shortage.
Newsfeed: Europe’s Natural Gas Shortage Could Trigger A Food Crisis Read More »
Globally, debt and equity capital markets lost around $23 trillion of ‘wealth’ in Q2 as Putin’s invasion sent commodity prices higher, slammed stocks on recession fears, and central banks around the world engaged in policy-tightening to battle the inflationary monster at their doors.
Newsfeed: US Household Net Worth Crashed By Most Ever In Q2 Read More »
Hedge fund manager Kyle Bass’ private equity firm is placing big bets on land. Bass is buying tens of thousands of acres of Texas dirt which appears out of the norm for the hedge manager, considering he has wagered complex macro trades in financial markets for over two decades.
Newsfeed: Kyle Bass Acquires Texas Land As Boom Times Could ‘Last At Least A Decade’ Read More »
Young professionals are generally staying close to home, according to new research. The Census Bureau and Harvard University recently found that 80% of young adults live less than 100 miles from where they grew up. Meanwhile, just 10% had moved more than 500 miles away. This means that while big cities like New York and Los Angeles have been millennial hotspots for years, the tides may be changing.
Newsfeed: States Losing (And Gaining) The Most Rich Young Professionals – 2022 Edition Read More »
U.S. Treasury Secretary Janet Yellen on Thursday pledged to pursue tax increases for high-earning Americans in a bid to keep U.S. finances sound, as she gave a speech in Michigan on the Biden administration’s economic policies.
Less than a year after voters approved some of the strictest rent control measures in the country, the St. Paul, Minnesota, city council appears set to approve exemptions for new construction projects and other reforms opposed by activists.
Newsfeed: Economists win again as St. Paul revisits rent control policies Read More »
A majority of Americans, 56%, now say price increases are causing financial hardship for their household, up from 49% in January and 45% in November. The latest reading includes 12% who describe the hardship as severe and 44% as moderate.
Newsfeed: Inflation Now Causing Hardship for Majority in U.S. Read More »
Mortgage rates are up, so fewer people can afford to buy homes. That means additional demand for single-family rentals and apartments, right? Well, probably not. We’re increasingly skeptical of that prevailing view.
Newsfeed: Will Higher Mortgage Rates Boost Demand for Rentals? Probably Not. Read More »