Executive Summary With mortgage interest rates soaring, many people expected a sudden drop in home prices. The data shows the quantity of homes sold has decreased significantly (see first graph). Yet, according to the Zillow Home Value Index, home values have risen back to new highs (second [...]
Executive Summary Prior to the pandemic, household savings were trending upward and then spiked with multiple rounds of government stimulus money (see green in first graph). In 2022, the savings drawdown accelerated (see red in first graph). A study by the San Francisco Federal Reserve estimates at [...]
Executive Summary Fitch, one of the three largest credit rating agencies, recently downgraded the U.S. debt rating from AAA to AA+ because the debt-to-GDP ratio is projected to reach over 118% by 2025. This ratio of debt is way out of line of a AAA rating, which [...]
Executive Summary Since the Federal Reserve Bank raised the Federal Funds Rate to 5.25%, the 30-year fixed mortgage rate has jumped to 7.46% (see second graph) – over double the pre-pandemic rate. At the same time, home prices have only dropped between .9%-2.3% (3rd graph) according to [...]
Executive Summary Most U.S. businesses use debt to maintain operations. The first graph shows how banks are tightening lending standards compared to the concurrent rise in prime interest rates on loans moving from 3.25% to 8.5%. Revolving debt outstanding is around $1 trillion. These loans normally contain [...]