Location? Jobs, Rent, Appreciation
Housing Boom – suddenly the mantra location, location, location doesn’t seem as relevant when: many people are working remotely, most schools are going virtual, and everyone wants more space. Redfin site traffic is up 40% since the pandemic and pending sales are at historic highs. The traffic to listings that are in towns with populations […]
Income Inequality, Jobs, Appreciation
Income Inequality – during the first 70 years of the 20th century the ‘top 1%’ share of income dropped below 10% of the total pie. Over the previous 50 years it has rocketed back up to 20%. Alarmingly, a similar trend is absent in Western Europe. Rather than focus on tax-code redistribution of wealth, Europe […]
Fed Considers Climate, Appreciation, Rates Climb
The Fed – looks to be considering how policies built around climate change will impact productivity and long-run economic growth and the implications for their ‘neutral level of real interest rate’ or target rate. Under the Community Reinvestment Act banks are obligated to meet needs of local communities, especially low-to moderate income communities that are […]
Repo Market? Rates increase Slightly, Strong Housing Reports
What is the ‘Repo’ market? – recently the Repo market has been in the news a lot as the Fed intervened in mid-September when funds dried up. Repo is short for repurchase. When banks are short on cash they borrow from other banks for a short period of time while they cash in US Treasury […]
Millennial Myth-Busting, Strong Housing Reports, Rates Hopeful
Millennial Myth Busting – as an older Millennial I tire of click-baity articles that claim Millennials killed ‘x’ industry/company and can’t afford a home because they spend too much on avocado toast. Gray Kimbrough has written a few interesting economic papers that dispel many of these myths pointing toward contributing factors such as the recent […]
Rates Improve, Fed Cuts Likely, Conforming Low Income Program Updates
Both Fannie & Freddie have announced updates to their low income/down payment programs that give discounts on note rate and mortgage insurance rates (these programs allow: 3% down, boarder income, ADU income, & low down payment on owner occupied 2-4 units). The updates make it more challenging to qualify. Instead of allowing 100% of Area […]