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Markets are settling into holiday mode, with stock futures slightly down on the last full trading day before Christmas. Here’s where things stand today: * Nasdaq-100: +0.37% * S&P 500: +0.04% (flat) * Dow Jones: -0.22% On Friday, the S&P 500 rose 1.1%, recovering
Quantum computing stocks are taking off in 2024. Is this the start of something big? Let’s take a closer look Google’s Chip Changes the Game Google’s new Willow chip, a 105-qubit processor, hit a big milestone: * Fixed Errors: It solved a 30-year problem by cutting down error
Government surveys that track the economy are failing. Budgets are shrinking, people are skipping surveys, and economic data we rely on is becoming less trustworthy. This is a big deal—because when the numbers are wrong, decisions that affect markets, businesses, and everyday life go wrong, too. Here’s what’
The S&P 500 Value Index just dropped 3.7%, marking its longest losing streak on record. Meanwhile, Bitcoin smashed past the $100,000 mark, and the Nasdaq climbed to 20,000. To me, it seems that value stocks have been left in the dust, and investors chasing bigger
Almost $10 billion has poured into Bitcoin ETFs since the US election, pushing Bitcoin past the $100,000 mark for the first time. The momentum is crazy, with Bitcoin posting its best winning streak since 2021. With investors pouring in, knowing the risks are more important than ever. Bitcoin’s
Ah, the joys of trying to buy your first home in 2024. If you’re a millennial, you’ve likely realized that getting into the housing market today feels like trying to solve a Rubik's Cube blindfolded.
Surprisingly, things weren’t always this bad. Sure, Baby Boomers had it rough too, but today’s market? It’s a whole new level of tough. Let me explain how millenials today are getting the short end of the stick.
Inventory Levels: Then vs. Now
Back in the 1980s, there was actually a decent supply of homes on the market. Yeah, mortgage rates were sky-high (we're talking above 10% most of the decade), but with enough houses to go around, affordability eventually improved as rates dropped. Fast forward to today, and the script has flipped.
We’re dealing with a severe inventory shortage, which means even though mortgage rates are much lower than in the ’80s, home prices have shot up more than 50% since 2019.
Mortgage Rates and Affordability
Let’s talk numbers. In 1982, mortgage rates soared above 18%. Yet, despite these insane rates, homes were more affordable because prices weren’t as inflated as they are today.
Fast forward to 2024, and while mortgage rates sit at just below 6.5%—you’d need an income of $110,544 to afford a median-priced single-family home. That’s more than double what you would have needed in 2021, according to the NAR.
Consumer Sentiment
Back in the day, optimism was surprisingly high despite those brutal interest rates. In September 1985, 72% of consumers thought it was a good time to buy a home, according to the University of Michigan’s consumer sentiment survey.
Today? Not so much. In June 2024, that number plummeted to just 12%. The contrast is wild—it's not surprising so many millennials feel priced out of the market.
So, what does this all mean for you, the aspiring homeowner? Well, today’s market is tough. Even if mortgage rates ease by the end of the year, the persistent lack of supply is likely to keep home prices high.
The 1980s might have had their challenges, but at least there was a light at the end of the tunnel. For home-buyers today, the tunnel seems to be getting longer.