What I’m Reading
Called It: About a year ago, there was a lot of handwringing over what would happen to the millions of homeowners in forbearance once accommodations expired. I pointed out (on the old blog) that we wouldn’t see any meaningful distressed sales because borrowers were equity rich. Instead, I argued that institutional landlords would begin rolling out sale leaseback programs as a way to get more inventory at attractive prices while also allowing people to stay in their homes. As predicted, that is now happening. For the record, I don’t particularly like this but it is better than the distressed sale/ displacement alternative. Wall Street Journal
Hot Corner: As employees return to the workplace on a part-time basis, they are increasingly finding that they do not have assigned workspaces. So-called “hot desks” that different employees can use depending on who is in the office allow employers to reduce space needs without reducing head count are gaining popularity. Wall Street Journal
Pressure Valve: Rents are tumbling in major coastal California cities like San Francisco and Los Angeles and rising in nearly every other city in the west on a year-over-year basis. (h/t Steve Sims) Globe Street
Staying Power: Mortgage refis were supposed to drop off a cliff in 2021, falling over $1 trillion from 2020. That number has been revised upwards substantially as persistently low rates remain. The revised $1.74 trillion projection will still be well below 2020’s torrid $2.6 trillion pace. The Basis Point
Take This Job and Shove It: As the economy reopens, employers are facing a new headache as workers re-assess their careers in a suddenly hot market: retention. Surveys show that anywhere from 25% to upwards of 40% of workers are thinking about quitting their jobs. Axios
Chart of the Day
US core CPI has diverged from other advanced economies.
Source: The Daily Shot
WTF
Unwanted Visitor: A 7 foot alligator wandered into the lobby of a post office and had to be removed by trappers because Florida. UPI
Crowd Control: A man was arrested for firing a gun into the air during a massive brawl at an MMA event because Florida. SB Nation
Basis Points – A candid look at the economy, real estate, and other things sometimes related. Visit us at RanchHarbor.com