What I’m Reading
King of the Road: Over the last decade, urban markets with good mass transit options were at the forefront of economic growth. However, as the economy reopens, the car has become the favored mode of commute transportation and markets that are more car-centric could become more desirable.
Booster Shot: Talks in Washington about fiscal stimulus are well underway. This is not at all surprising given that its an election year and enhanced UI is set to expire at the end of July. This will most likely keep apartment rent collections at a relatively high level so long as it keeps getting extended. That being said, as always, its a fair assumption that there will be a lot of horse trading and nothing will actually be enacted until the last moment.
Downward Trend: Apartment rents are falling across the country with some metros experiencing more than double the US average.
Clear Demand: Suppliers are running low on Plexiglas as demand for the clear barrier material soars.
Party On: This quote from Bill Zox, a high-yield bond portfolio manager at Diamond Hill Capital Management about junk bond sales already setting an all-time record in June before its even over is something else:
“You get an invitation to a party from the Fed, Treasury and Congress — they offer to pick you up, take you home and bring you breakfast in bed the next morning. You know it is going to be a party like no other.”
And Now for Some Good News: Meet Augie, a golden retriever who is celebrating her 20th birthday – almost double the life expectancy of her breed – making her the world’s oldest of her kind. What makes this story even more awesome is that her family adopted her when she was 14 years old! Apparently someone is cutting onions as I write this.
Chart of the Day
Mortgage rates are hovering near all time lows but spreads are still stubbornly higher than their historical norm.
Source: Piper Sandler
This is mostly due to the elevated spread on mortgage backed securities.
Source: The Daily Shot
Burned: A woman was arrested for assaulting her ex husband with a hot pizza because Florida.
Joy Ride: A man was arrested for stealing, crashing and ultimately abandoning a a $1MM yacht because Florida.
Landmark Links – A candid look at the economy, real estate, and other things sometimes related.
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