😈 Rabid Labor Market Attacks Housing
Mortgage rates get hammered by employment
Mortgage rates are acting like a rollercoaster these days, thanks to the honey-badger labor market.
Just when you think they've peaked, they dip down again. With wages inching up but not enough to keep pace, it seems the housing market might be in for some surprises.
Speaking of surprises, have you heard about WeWork?
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They're playing a high-stakes game by holding off on interest payments for a whopping $95 million.
Word on the street is they're taking a timeout to chat with their buddies about it, but not everyone's buying that story.
Word on the street is that they might be in some hot water.
If things go south, this could be the treasure map leading us to some golden opportunities.
In this edition of the AltReports:
😡 Rate Rampage
💰 Price Pitfall
💃 Default Dance
📉 Recession Reflections
😩 Fed Frustration
Video of the Week: Something Weird is Happening in the Housing Market
Chart of the Week: ROI on Investment Property is Now BELOW the 10-Year Note Yield!
Podcast of the Week: From $16/Hour Factory Wages to SIX-FIGURE Real Estate Paychecks
The honey-badger labor market slapped the economy awake, shooting up bond yields and mortgage rates, only to see them dive down later.
Job gains spawned in various sectors like government, health care, technical services, etc.
Wages? Well, they rose slightly to $33.88/hour, on average.
Brace yourselves for a not-so-sweet housing market scoop, served sizzling hot.
There are over half a million single-family homes out there, gathering dust.
Yup, as mortgage rates climb Mount Everest, people's wallet size shrinks inversely.
In a bold move that screamed, "We might go broke, so what?" WeWork pumped the brakes on interest payments for $95 million worth of senior secured notes on October 2.
They said they've got a grace period of 30 days before anyone starts throwing around the "d" word (default).
Their defense is, “pump the breaks, we've got the dough. We might even cough it up.”
According to their filing, they claim it’s like a timeout to chat with stakeholders. But folks on the ground see it differently.