Infrastructure Plan, Rents Normalizing, Home Appreciation 15 Year High
Infrastructure Part 1- Biden outlined his $2T infrastructure plan this week – it is structured as $250M per year over 8 years funded by an increase in corporate taxes from 21%-28% (still lower than 2017 cuts) and the elimination of a rule that allows U.S. companies to pay no taxes on the first 10% of […]
2020 Affordability, Fed Consistent, SFR Permits Improve
Even though home prices increased reached an all time high last year affordability increased significantly. A good reminder that that their are multiple factors to consider when purchasing a home and chief among them is monthly payment compared to monthly wages – not what rate or what price. Rates increased again this week as Mortgage […]
New Stimulus, Strong Equity, Light Inflation
$1.9T in Stimulus includes: $1,400 to individuals meeting requirements$300 additional weekly unemployment benefits extendeduntil Sept 6th, gig workers can qualify. Student loan forgiveness not taxable through 2025! Child Tax Credit is now more generous increasing as much as $3,600 per child. Rates – Increased again this week continuing the 2 month trend. Rates are down […]
Digital Renaissance & February Jobs Report
Cryptocurrency has given birth to a Renaissance* in digital art. This pixelated pop-tart rainbow cat’s original image and code (non-fungible token) sold for a whopping $590,000. A NFT or non-fungible token cannot be exchanged for another thing of equal value, it’s one of a kind. Which is how cryptocurrency is sold. Ultimately what your buying […]
2021 = Recovery? Home Sales & Values on Fire
Three positive economic indicators in 2021:1.) People are spending money again – retail sales are up 5% and bar/restaurant sales are up 7%2.) The lives of more economically vulnerable people are improving – 5 million fewer people reported not having enough food to eat (unfortunately there are still 24M people short on food) and only […]
Propane Demand, Mortgage Rates Increase, Home Building
Pandeminomics: If you have tried to find propane recently (this week I felt the squeeze on bar & chain oil & non-ethanol gasoline) you must understand that 50% of people get their heat from liquid propane or natural gas in this country. When power goes out people turn to propane and non-ethanol gas to run […]
Responding to Failure, Meek Jobs Report, Strong Appreciation
A story of how two brilliant investors responded to an economic crisis that left them nearly wiped out. Why was John Keynes able to recover? John was able to change his mind and see failure as a learning opportunity. Rates – increased very marginally this week as the price of Mortgage Backed Securities degraded slightly. […]
Yellen is Back, Market Euphoria, MBS Follow Technicals
During her confirmation hearing Treasury Secretary Janet Yellen – previous Fed Chair who is supported by all living former Treasury secretaries – told congress it’s time to go big while rates are low. The head of both our fiscal policy (treasury secretary) and our monetary policy (federal reserve) are both quick to open their wallets […]
Necessity Breeds Innovation, Freight Increases, Stimulus Plan Released
One exciting outcome of the pandemic is innovation. This story is a classic example of starting a business out of need for income and demand in the market. According to the census bureau this is happeningaround the country at the fastest pace in a decade. Rates – recovered some of their losses from the previous […]
2021 Indicators, Jobs Report, Rates Increase
Insight for 2021: – Basic needs: Between the end of August and December the number of Americans not getting enough food increased by 5M and is now up to 27M or 1 in every 8 Americans. Hopefully this will drop back down by 5M with new stimulus extending unemployment benefits– Service spending: spending money on […]