Stagnant housing market until 2026 (July - Nova News)
Another month has passed, and it’s time to catch up! As we approach the celebration of Independence Day, it’s the perfect time to consider the latest updates and insights that the world of economics and real estate brought us.
HOT NEWS
The 100 million fund is prepared for affordable housing in the U.S.
There are 444,500 flights expected for the July 4th celebration.
Record-breaking stock performance at risk due to the cooling job market.
TODAY'S TOPICS
With a 35% jump in active listings, home prices are starting to decrease.
What are the best-performing stocks this month?
One-third of American summer vacationers are ready to go into debt to pay for the experience.
Mysterious monoliths keep appearing in remote places in the U.S. and all over the world.
The 4th of July is celebrated far beyond the States.
QUIZ
1. How many hotdogs do Americans eat on July 4th?
150 million
100 million
50 million
250 million
2. The designer of the current U.S. flag, Robert G. Heft, created it in 1958. How old was he at the time?
22
17
65
40
3. How many people were living in America when the Declaration of Independence was signed?
1 million
2.5 million
10 million
100 million
REAL ESTATE
Current mortgage rates
30-year – 7.13%
20-year – 6.91%
15-year – 6.47%
10-year – 6.65%
Real estate news
Over the last four weeks, home prices have started to cool with a 35% jump in active listings. Since the onset of the COVID-19 pandemic, the typical house has sold for slightly below its asking price—0.3% lower. To put it in perspective, a year ago, homes typically sold at the list price, while two years ago, they fetched about 2% above the list price. Learn more
The housing market could be “stuck” until 2026. Bank of America economists suggest that the housing market will remain stagnant for several years unless a recession occurs. They foresee challenges in boosting sales or lowering prices to attract younger buyers back into the market. Learn more
Treasury Secretary Janet Yellen announced a $100 million fund dedicated to affordable housing. Over the next three years, the funds will be provided to finance these housing projects. Some agencies that help finance housing are being called upon for their support in the initiative. Learn more
U.S. ECONOMY
Inflation
Current US inflation rate: 3.3%
Unemployment
Current US unemployment rate: 4%
FED rate
Fed funds interest rate: 5.33%
U.S. economy news
The IMF suggests keeping the Fed funds rate within the 5.25% to 5.50% range. The head of the International Monetary Fund believes the Federal Reserve should hold off on cutting interest rates until at least the end of the year. The U.S. leads among G20 economies with growth exceeding pre-pandemic levels, potentially contributing to inflationary risks. Learn more
36% of Americans plan to go into debt for summer travel. Banking experts and industry analysts find it concerning because the average credit card interest rate is over 20%, nearing a record high. Learn more
Fed says that inflation slowed to its lowest annual rate in more than 3 years. This conclusion comes from the new data on the core Personal Consumption Expenditures (PCE) price index. It measures the change in prices of goods and services, excluding food and energy, to provide a stable view of inflation. According to the PCE index, inflation rose 2.6% in May compared to the previous year, in line with the Dow Jones estimate. Learn more
GLOBAL OUTLOOK
The Japanese yen has dropped to its lowest value against the US dollar since 1986. Traders are worried now that officials might need to step in to support the weakening currency. Overall, the yen has dropped 12% against the dollar this year. Learn more
90% of Chinese companies in the U.S. will keep or increase their investments. Despite the well-known rivalry between the two economies, an annual survey of Chinese enterprises showed that 60% of companies will keep their investment levels steady, while 30% intend to boost them. Learn more
Inflation in Europe is decreasing, but there is still much to be done to control prices. The European Central Bank (ECB) still has ‘a long way to go’ to control inflation, according to its president, Christine Lagarde. Although the ECB cut interest rates for the first time since 2019, Lagarde stated that rates will need to remain restrictive to ensure price stability, despite the decrease in inflation and the expectations of reaching the 2% target next year. Learn more
STOCK EXCHANGE
Stocks recommended by experts
3 top best-performing S&P 500 stocks in July 2024 based on one-year results:
Stock market news
Record-breaking stock performance at risk due to the cooling job market. As jobs become harder to find, the stock market might be in trouble after a record-breaking first half of the year, where the S&P 500 saw its best performance in nearly 50 years for an election year. The unemployment rate has risen to 4%, and if job metrics don’t meet expectations, it could signal a larger economic slowdown. Learn more
COFFEE BREAK
Fun facts
3 curious facts about the Independence Day:
From 1777 to 1960, there have been 27 official versions of the U.S. flag, with 25 of those changes affecting only the stars!
Some argue that Independence Day should be celebrated on July 2 because the Continental Congress voted for independence that day in 1776. However, the Declaration of Independence document wasn’t approved until July 4, 1776. What do you think is right?
Independence Day isn’t just celebrated in the U.S. There are events in Denmark, Norway, Ireland, and Australia, too.
Fun news
This Independence Day is set to make history. The US regulator anticipates over 444,500 flights between June 26 and July 5. There is no data about the weekend after the holiday, so the actual number can be even more mind-blowing. Learn more
Another mysterious metallic monolith has been found near Las Vegas. For 4 years now, someone has been placing these metallic structures randomly around the globe. The first one was discovered in Utah, followed by sightings in Romania, California, Spain, and Paraguay. Now, the police have spotted one again in the U.S. What are these monoliths? While some think aliens are involved, most agree it’s either an art project or a prank. Learn more
Investor of the month
Ray Dalio
One of the most prominent investors, Ray Dalio, has been active for over 50 years, creating one investment innovation after another. He coined terms like “risk parity,” “alpha overlay,” and “All Weather,” which have reshaped how institutions worldwide approach investments.
Dalio also founded Bridgewater Associates, the world’s largest hedge fund since 2005, starting from his apartment in New York. The firm has generated more money for its investors than any other hedge fund. It’s no surprise that TIME magazine listed Ray Dalio as one of the 100 most influential people in the world.
QUIZ ANSWERS
$150 billion
17
$2.5 million
CONTENT YOU CAN’T MISS
This month’s recommended book
Doughnut economics: 7 ways to think like a 21st-century economist by Kate Raworth
The author challenges the cracks in our economic system, especially its visual representations like circular flow models and GDP growth curves. Raworth aims to revolutionize economics by reshaping these fundamental images, using the doughnut metaphor to illustrate the limits of growth.
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