What I’m Reading
Doubling Up: Demand for flexible warehouse space continues to increase and some property owners are taking advantage with co-warehousing options. Think WeWork, but for warehouses. Wealth Management
Over the Falls: New home sales continue to fall sharply while prices for new and existing homes continue to increase sharply (but showing signs of slowing). Bonddad Blog
Going Extinct: The global stockpile of negative yielding debt has fallen by $16 trillion since peaking in late 2020 as central banks fight inflation. Wall Street Journal
Squeezed: The dollar has hit a 20-year high relative to a basket of other currencies. When the dollar appreciates, the cost of servicing debt in other countries, particularly emerging markets, can easily become unsustainable because their debts aren’t denominated in their own currencies. This could get ugly. Bloomberg
Pushing on a String: Mortgage demand has continued to decline even as interest rates have fallen. Perhaps the best illustration of market softness is that demand for mortgage refinances are down 83% from a year ago. CNBC
Chart of the Day
Mortgage rates have always exceeded (or for brief periods equalled) inflation up until now. We are truly in uncharted territory.
Source: JBREC
WTF
Poor Sport: A chess playing robot broke a boy’s finger at a tournament because Russia. CNN.com
Joy Ride: A man was arrested on allegations of driving a motorized scooter while drunk and crashing into shelves at a Walmart because Florida. Click Orlando
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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