Functional & Psychological Obsolescence

Originally Published 3/29/19

Planned & Psychological Obsolescence, Rates Improve, Inflation Tepid

This Planet Money Podcast explores how planned obsolescence brightened lightbulb sales and psychological obsolescence helped drive auto sales (advertisement for next year’s shinier model in the glovebox). I’m curious how often psychological obsolescence motivates real estate purchases versus functional obsolescence (need more beds, baths, garage, etc.)

Rates – improve marginally this week after a big drop last week that put mortgage rates and the 10 Year US Treasury note at 15 month lows. 

New Home Sales – were up almost 5% in February, reaching an 11 month high. 

Inflation – The Producer Price Index, which is the Fed’s favorite gage of inflation, decreased 0.4% to 1.4% in January. This is good news for borrowers as inflation is the arch nemesis of mortgage rates. 

Jobs – the number of people filing for unemployment for the first time continued its downward trend. 

Categories Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this:
search previous next tag category expand menu location phone mail time cart zoom edit close