What I’m Reading
Domino Effect: Higher mortgage rates and a slowing housing market will help slow inflation today. However, it will also lead to less home building and layoffs across the housing industry ranging from builders to lenders and everything in between. As a result, a slowdown today likely makes housing dysfunction and shortages worse when the rates fall again and the market rebounds. Bloomberg
Nudge: Soaring mortgage rates are pushing more potential buyers towards remaining renters. As a result, SFR occupancy is at its highest point in two decades as rents continue to rise. Globe Street
Hitting the Wall: Container shipping data shows that demand for US imports is diving hard, reverting to pre-pandemic levels as retailer inventories continue to build in the midst of a consumer slowdown. Freight Waves
Risky Business: Investors are increasingly levering up to buy short term rentals in vacation markets. The big risk here is that these properties don’t have long term leases and are reliant on short term revenue to service long-term debt. If / when the economy slows down, this could be an early trouble spot in the housing market. (h/t Steve Sims) Bloomberg
Flush: Crypto is facing a liquidity crisis and things are beginning to break. Yahoo! News
Chart of the Day
Refinance candidates have fallen to almost nothing. Last one out turn the lights off.
Source: Black Knight
WTF
Catching Some Rays: A man was arrested for riding his dirt bike onto an airport tarmac, disturbing the flow of incoming and outgoing aircraft in order to “take in the sun and fresh air” because Florida. News Channel 8
Dress for Success: A man in a cow costume was arrested during a drug house bust because Florida. 7 News Miami
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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