Articles Posted by millenial4freedom
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Stock have notched a string of record highs this year, driven by a tech frenzy and high federal spending that have blotted out all else, Bill Gross wrote in his latest investment outlook.It's these factors that have spurred the S&P 500 up over 20% since mid-2022, even as interest rates tightened aggressively in the same timeframe, sending Treasury yields higher.And the trend isn't going away anytime soon, he asserted: "Buckle up for excessive exuberance."Typically, bond yields will decline ahead of stock euphoria. For instance, the Nasdaq 100 increased twelvefold after the 10-year real rate fell from 2% to negative 1%...
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The Dow Jones Industrial Average closed above 38,000 for the first time on Monday, setting a record high and capping a steady rise that stretches back to last week. The S&P 500 also reached a record high, closing at about 4,850. The tech-heavy Nasdaq inched up to 15,360 by the end of trading on Monday. The major stock indexes kicked off the year with sluggish performance but began to turn upward in the middle of last week. The recent surge follows a stellar showing for markets in 2023, driven in large part by optimism about the prospects for a "soft...
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ALBANY — Affordability, housing and public safety are top of mind for some Capital Region lawmakers as the year's legislative session has kicked off at the state Capitol. With recent data from the U.S. Census Bureau showing New York lost more than 100,000 residents for a third consecutive year, the continuing outmigration is a key challenge that lawmakers from this area and across the state say must be addressed. Assemblyman John T. McDonald, a Cohoes Democrat, said the issue merits a comprehensive review of what has been pushing New Yorkers to leave, beyond holding a single hearing on the topic....
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High home prices and even higher mortgage rates; that’s how most people would describe last year’s housing market—one that by some estimates was the least affordable since the 1980s.It’s simple: Home prices skyrocketed during the pandemic and rose steadily last year despite mortgage rates more than doubling. Those high mortgage rates, having risen from historic lows, kept homeowners from selling, which further exacerbated already tight supply and kept home prices up—all while chilling the housing market. The situation was so dire, and still may be aside from slight improvements in affordability, that Zillow’s chief economist, Skylar Olsen, released her own...
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Ahead of the December meeting, one economist argued the Federal Reserve's "dangerously high" interest rate hikes are transitory, and that the Fed will make cuts in the first quarter of next year.On "Mornings with Maria," Monday, TrendMacro CIO Donald Luskin explained his frustration with the Fed's rate hike campaign and his economic outlook."Please, please, please, can we all stop listening to Jay Powell? Please. Mr. Inflation is transitory. He is still so embarrassed about that one. He's now insisting that his dangerously high-interest rates are not transitory. Oh, they will be," Luskin said. "Inflation is collapsing and he knows it....
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Wall Street is gearing up for rate cuts. Twenty months after the Federal Reserve began a historic campaign against inflation, investors now believe there is a much greater chance that the central bank will cut rates in just four months than raise them again in the foreseeable future.Interest-rate futures indicated Monday a 52% chance the Fed will lower rates by at least a quarter-of-a-percentage point by its May 2024 policy meeting, up from 29% at the end of October, according to CME Group data. The same data pointed to four cuts by the end of the year. Investors, battered by...
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The nearby cities of Cambridge and Chelsea have experimented with similar programs and supporters say it could be a boost to nearly 18% of Boston residents.
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The average monthly mortgage payment is a whopping 52% higher than the average monthly rent on a house or apartment — a ratio that hasn’t been this out of whack since before the 2008 housing crash, according to The Wall Street Journal.
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SEATTLE, October 17, 2023--(BUSINESS WIRE)--(NASDAQ: RDFN) — A homebuyer must earn $114,627 to afford the median-priced U.S. home, up 15% ($15,285) from a year ago and up more than 50% since the start of the pandemic, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That’s the highest annual income necessary to afford a home on record.
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#NEW @MBAMortgage , @NAHBhome , and @nardotrealtor just wrote a letter to Fed Chair Jerome Powell. They’re asking for… 1. No more rate hikes 2. The Fed to “not sell off any of its MBS holdings until and unless the housing finance market has stabilized”
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The mothers of the two teens accused of deliberately running over and killing a retired police chief in Las Vegas last month have broken their silence, as one proclaimed her son’s “side of the story” will be told. Jesus Ayala, 17, and Jzamir Keys, 16 were arrested last month when they recorded themselves striking Andreas Probst, 64, who had been riding his bicycle on a neighborhood street, according to the Las Vegas Review-Journal. A judge ruled Wednesday that the teens will face their charges as adults. The two mothers, who both remained unnamed, took different directions when questioned about their...
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On a quiet cul de sac in suburban Los Angeles, the installation of Martin Guevara and Grace Kuo's prefab accessory dwelling unit, or ADU, caused quite a stir in the neighborhood. "It was like a block party," said Guevara, 68. "All of our neighbors came out to watch." Guevara was referring to a prefab ADU designed and built by Villa Homes; the 850-square-foot home was craned over the couple's existing home and placed into position in their backyard in the South Bay last year. "It was in two halves," said his daughter Melanie Guevara, 33, who lives in the ADU...
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U.S. home prices across the country are surging even with the astronomical rise in mortgage rates, putting ownership out of reach for millions of Americans.The spike in interest rates – which topped 7% last year for the first time in two decades – has created a "golden handcuff" effect in the housing market: Sellers who locked in a record-low mortgage rate of 3% or less during the pandemic began have been reluctant to sell and take on a more expensive option, leaving few options for eager would-be buyers.
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The U.S. housing market has been over the past year walloped by high mortgage rates and a worsening inventory shortage.It may soon face another obstacle: Student loan repayments.Real estate experts are bracing for a significant blow to the market when the pandemic-era freeze on federal student loan payments comes to an end this fall, according to a recent poll conducted by Pulsenomics.
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SEATTLE, Aug. 24, 2023 /PRNewswire/ -- Zillow Home Loans announced its 1% Down Payment program to allow eligible home buyers to pay as little as 1% down on their next home purchase. This program is initially being offered on properties located in Arizona, with plans to expand to additional markets. With the 1% Down Payment program, borrowers who qualify can now save just 1% to cover their portion of the down payment and Zillow Home Loans will contribute an additional 2% at closing. The 1% Down Payment program can reduce the time eligible home buyers need to save and open...
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As massive consumer tailwinds like excess savings fade, one wonders what — if anything — could help fuel the next leg of the consumer spending boom that has been juicing economic activity.In a research note Tuesday, Wells Fargo economists Tim Quinlan and Shannon Seery put a spotlight on a potential whopper: home equity."Strong home price appreciation in the years following the pandemic may be an underappreciated tailwind for the household sector," the economists wrote. "The total value of the U.S. single-family market breached $40 trillion last year, and the mix between debt and equity has shifted over time with the...
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In December 2021, when the 30-year fixed mortgage rate still averaged 3.1%, a borrower could get $700,000 mortgage that required monthly payments of principal and interest of just $2,989. Fast-forward to Wednesday, and a $700,000 mortgage taken out at the current average mortgage rate of 6.90% would equal a $4,610 per month payment, which is $583,000 more over 30 years than that mortgage issued at a 3.1% rate. When adding on insurance and taxes, that monthly payment could easily top $6,000. Not to mention, that calculation doesn't account for the fact that U.S. home prices in June 2022 were 12%...
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The stock market is overvalued, and it's not just the tech sector that appears stretched, according to JPMorgan's chief global market strategist Marko Kolanovic.The S&P 500's forward price-to-earnings ratio is currently 19.4x, and when you back out tech and AI stocks, the remaining 65% of the index trades at 17.4x, according to Kolanovic. That's not cheap, as the historical forward P/E of the index is 15.3x, meaning that current valuations represent a 10% premium. "FOMO is in full swing, there is complacency being built into stocks with VIX at the lows of its range," Kolanovic said in a Monday note....
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