The Pulse on the Economy and Capital Markets: July 4 – 8, 2022
July 12, 2022
At a glance:
- Markets were up across the board as economic data suggests the worst is possibly behind us, and that the Fed may not respond as aggressively to raising interest rates.
- The Nasdaq and Russell 2000 had the largest gains and bitcoin rallied big ending the week up nearly 13%, while government and investment-grade bonds declined.
- Gas prices may have peaked and could start rolling over after prices shot up from $3.50 to nearly $6 this year.
- Mortgage rates are mirroring gas price patterns as the 30-year fixed-rate mortgage drops to 5.3% from 5.7% last week. However, this recent drop is the largest decline since 2008.
- Home builders’ sentiments worsen as mortgage rates reduce home affordability and home inventory drops to about half of 2019 levels.
- More people are working from home, which is a key factor impacting low inventory levels on homes. Of the top 10 markets for commercial office real estate only three – Austin, Dallas and Houston – are at or above 50% occupancy and above the national average.
- As it relates to industry news, we’re reading about top places for singles to relocate, rising mortgages are slowing the construction of single-family and multifamily homes, crypto brokerage Voyager Digital files for bankruptcy and Elon Musk faces a long legal war with Twitter.
- Top places to move if you’re single and why it’s not NYC
- Single-family construction continues to slide as multifamily begins to cool
- Crypto brokerage Voyager Digital files for Chapter 11 bankruptcy protection
- Elon Musk faces a long legal war with Twitter, which has the upper hand
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About the Author
Simeon is the Chief Investment Officer of Aprio Wealth Management and the Director of Aprio Family Office. Simeon brings two decades of professional investing experience in publicly traded and privately held companies, as well as senior-level operating and strategy consulting experiences.