Silver Lining

Silver Lining

  This week, the Commerce Department announced that real GDP fell at a seasonally adjusted annual rate of 0.9% in the second quarter. This followed a 1.6% decline in the first quarter. Taken together, that’s two consecutive quarters of declining real GDP, which...
Jumbo Hike

Jumbo Hike

  This week’s big news was the release of the June Consumer Price Index (CPI) inflation number. On a year-over-year basis, headline inflation came in at 9.1%. That’s the highest it has been in 41 years and was higher than Wall Street’s expectations. As a...
Home Prices vs. Rents

Home Prices vs. Rents

  This week’s featured chart shows a reason why we probably won’t see inflation come crashing down any time soon. The chart, shown above, shows the ratio between home prices and rents. When it’s rising, it means home prices are growing faster than rents; when it...
Can’t Afford It

Can’t Afford It

  It’s getting a lot harder for the average American family to afford a house these days. As shown on our featured chart above, the Housing Affordability Index (blue line, top clip) has fallen off a cliff. Compared to last year, the index has dropped 44 points...