Mortgage Rates Have not Been This High in 20 Years

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You’re studying Investor Junkie’s weekly publication that will get you caught up on the week’s monetary information in lower than 5 minutes.

October seventeenth, 2022

Last week’s market abstract (October Tenth-14th, 2022):

  • S&P 500: -1.77%
  • Dow: +0.74%
  • Nasdaq: -3.18%
  • Bitcoin: -1.30%

Hey Junkies,

Happy Monday! Last week was extra news-heavy than typical, so we now have quite a bit to cowl as we speak. These are the financial occasions that we’ll be discussing:

Keep studying for the complete scoop on every of those tales and to get a sneak peek at what everybody’s more likely to be speaking about subsequent week.

Clint, Editor-in-Chief

What Everyone’s Been Buzzing About

1. Mortgage Rates Swell to 20-year excessive

In its newest weekly report which launched on October thirteenth, Freddie Mac introduced that the typical 30-year mortgage price had risen to six.92%. That was a large soar up from the earlier week’s price of 6.66% and marked the best stage that we have seen since April 2002.

30-Year Mortgage Rates Over Time

Even extra startling is the truth that mortgages have greater than doubled from the place they had been a yr in the past (3.05%). These skyrocketing charges have despatched shockwaves by the housing market. Demand has plummeted to a 22-year low and practically 20% of dwelling sellers decreased their asking costs in September.

Give me some excellent news >>> 3 Benefits of Buying a Home When Interest Rates Are High

2. GM Is Getting Into the Energy Business

Back in January 2021, General Motors put Tesla on discover by asserting that it deliberate to be an all-electric automobile producer by 2035. But it seems the EV business is not the one Tesla turf that GM is seeking to transfer into.

Next up: power storage and administration

Last week, the corporate launched GM Energy which it is describing as “An Electric Ecosystem, Reimagined.” In addition to its present EV charging product, Ultium Charge 360, two new merchandise are on the best way: Ultium Home and Ultium Commercial.

GM Energy has already solid just a few key partnerships. For instance, photo voltaic firm SunPower is working with them to develop a customized dwelling power system. Among different issues, GM says that these properties will be capable to obtain energy from appropriate electrical automobiles.

ultium-gme-infographic

3. Inflation Rose Again, Defying Expectations

The Consumer Price Index (CPI) rose 0.4% in September. That introduced the annual price of inflation down a smidgen to eight.2%, however the worth development was nonetheless increased than the consensus estimate.

Leading the cost to increased prices are rents. The decrease homebuying demand that we mentioned earlier has elevated the rental market demand and that is led to huge hire hikes throughout the U.S. And whereas they’re slowly bettering, continued world provide chain points are additionally protecting costs stubbornly excessive in lots of industries.

Following the inflation report, the inventory market has skilled historic volatility. On Thursday, the S&P 500 began the day down by 2%, earlier than a seismic a reversal allowed it to shut the day up 2.6%…just for it to swing violently down once more on Friday by 2.37%. These are wild days on Wall Street.

Be Careful

Inflation survival information >>> 8 Best Inflation-Proof Investments for 2022

4. Hackers Stole $570 Million from the Binance Smart Chain

Binance Smart Chain, the crypto change’s cross-chain bridge, was hacked final week and the thieves had been capable of snatch about $570 million value of BNB. Importantly, no person funds had been affected and, as of writing, all however $100 million of the stolen belongings had been recovered.

Still, the incident as soon as once more highlights the vulnerabilities of cross-chain bridges. They’ve more and more turn into the first targets of hackers. Chainanalysis not too long ago reported that $2 billion has already been stolen in 13 cross-chain assaults, accounting for 69% of all stolen crypto funds in 2022.

The destructive information for Binance got here in every week when its rival Coinbase introduced a serious partnership with Google. Starting subsequent yr, the search big will start permitting its Google Cloud prospects to pay for his or her companies in cryptocurrencies by way of Coinbase Commerce.

Safety first >>> How to Spot a Crypto Scam

5. Meta Unveiled Its New $1,500 VR Headset

Mark Zuckerberg confirmed off his newest metaverse toy final Wednesday, the Meta Quest Pro. The high-end VR system packs some spectacular new eye and facial monitoring expertise.

Meta Quest Pro

The dangerous information? The $1,500 price ticket is over $1,000 increased than the Quest 2 which sells for $400.

Even if Meta is ready to get the worth of their premium Quest merchandise down over time, extra regarding questions lurk within the background, similar to:

  • Do sufficient individuals even desire a system like this?
  • What real-world issues does it remedy?
  • Is it lifelike to count on that sometime we’ll all carry VR masks with us in all places like we do our telephones as we speak? (in any case, they don’t seem to be precisely pocketable).

Despite Zuckerberg’s unwavering insistence, many shareholders stay skeptical that the metaverse would be the “subsequent huge factor” in client tech. Meta’s share worth has been on a gradual decline ever since…effectively, ever because it modified its identify to Meta. And shares fell sharply once more on Wednesday after the Meta Quest Pro product reveal.

More metaverse content material to take a look at (no headset required) >>>

What To Keep Your Eye on This Week

Here are just a few noteworthy financial occasions which might be developing this week:

  • Tuesday, October 18th: NAHB Home Builders’ Index | October
  • Wednesday, October nineteenth: Housing Starts | September
  • Thursday, October twentieth: Philadelphia Fed Manufacturing Business Index | October
  • Thursday, October twentieth: Existing Home Sales | September

Staff Favorites

At IJ, we’re effectively conscious that many different information groups and web sites are creating nice private finance content material. So every week we prefer to name out just a few current tales from our colleagues that we felt had been fascinating, eye-opening, difficult, inspiring…or simply humorous.

Here are our picks for this week:

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