What I’m Reading
Squeezed: U.S. housing affordability continues to get worse by the day as home prices rise alongside mortgage-interest rates. Wall Street Journal
Roadmap: The 2013 taper tantrum and 1994’s crunch are good examples of how a bond bear market does not always need to equal recession. Bloomberg
Crosswinds: 2022 is shaping up to be an interesting year for commercial real estate, with higher inflation, increasing interest rates and macroeconomic pressures like supply chain issues as well as changes in Federal Reserve policy. With a record number of cash chasing preferred asset types, we could be in for turbulence. Globe Street
Doubling Up: Demand for second homes was up a whopping 87% above pre-pandemic levels, according to Redfin. However, the market could be reaching its peak as mortgage rates rise. The Real Deal
Wait and See: With 4% 30-year mortgage rates, we will likely see a slowdown in both new and existing home sales. It also seems likely house price growth will slow. However, the impact on inventory is unclear. Calculated Risk
Chart of the Day
The market now expects the US yield curve to be inverted within a year.
Source: The Daily Shot
WTF
Blind Date: A British man rushed to save what appeared to be a woman lying motionless on a beach — but was shocked to discover it was actually a headless sex doll. New York Post
Fingered: A Utah motorist who was arrested after a traffic stop was found to have a severed finger in his wallet. The original owner of the finger is still at large. The Smoking Gun
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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