Buckle Up, Bonehead!

It's about to get bumpy (like it wasn't already)

Author

John Birke
March 04, 2024

The only newsletter (probably) where you can get the latest market trends, mortgage news, and social + AI updates all in one place

March 4th, 2024

This week has a lot to be keeping our eyes on, with just a glimmer of hope that we pray isn’t doused with a fire hose before next weekend.

  1. Homebuyers are getting the blues

  2. And home prices aren’t helping them

  3. But they can always rent

  4. Until the bank forecloses on their landlord

  5. But wait, could rate cut hopes still be on the table?

  6. Doesn’t matter, ‘cause our government blows

Plus, Elon Musk is ready to throw down with another tech giant again, except this time the giant is one of his own.

Really quick, if someone forwarded this email to you, don’t settle for being at mooch. Sign up and get it for yourself here 👇

Ok, let’s get to it!

 The Mortgage Part 

😢 Homebuyer Blues: A growing number of potential homebuyers are losing hope that they’ll ever be able to afford a home with high costs of living and too-low income.

Aspiring homeowners say they face two major obstacles to buying. Here's why 20% say it'll 'never' happen

Various factors make homeownership unaffordable for Americans. About half of aspiring homeowners blame two factors that further push away their goal.

www.cnbc.com/2024/02/26/more-than-half-of-aspiring-homeowners-face-two-common-roadblocks.html?__source=realestate%7cnews%7c&par=realestate

🏡 Price Spike: Home prices jumped 5.5% over the last year as demand stays high and inventory near record lows

Case-Shiller: National House Price Index Up 5.5% year-over-year in December

S&P/Case-Shiller released the monthly Home Price Indices for December ("December" is a 3-month average of October, November and December cl...

www.calculatedriskblog.com/2024/02/case-shiller-national-house-price-index.html

 🏦 Renting Still Hot: Even though supply of rental properties is up, demand has kept the market competitive. But, we have still seen rents come down about 1% nationally

Here are this year's most competitive rental markets

Miami is the most competitive city in the nation for renters, but on a regional level, the Midwest ranks first for competition.

www.cnbc.com/2024/02/27/most-competitive-rental-markets-for-2024.html

📈 Investor Trouble: Multifamily home owners are struggling to keep up with higher prices, rates, and vacancies, making the highest delinquency spike since the Great Recession

Freddie Reports Surge in Multifamily Serious Delinquencies

This is no surprise, but still a very large monthly increase in the delinquency rate. The multifamily rate increased recently as rent growth has slowed (and rents are falling in some areas), vacancy rates have increased, and borrowing rates have increased sharply.

calculatedrisk.substack.com/p/freddie-reports-surge-in-multifamily

🙏 Hope Isn’t Dead Yet:  The Fed may still be able to drop their rates in June despite a bump up in the inflation rate last month

UPDATE 1-Fed rate cut seen on track for June even as inflation bumps up

Federal Reserve policymakers have said they expect the path to their 2% inflation goal to be bumpy.

finance.yahoo.com/news/1-fed-rate-cut-seen-143946597.html

🏛 Actually, It Probably Is:  Congress narrowly passed a super-temporary spending bill to avoid a government shutdown… again. But the catch is it’s only until Friday, after that the shutdown is on!

Congress approves a short-term extension to avoid a shutdown and buy more time for final spending agreement

Congress passed another short-term spending measure Thursday that would keep one set of federal agencies operating through March 8

apnews.com/article/shutdown-government-funding-congress-deadline-ca365b6aa96b00a718e491ef7449d9d3

% Mortgage Rates: Still over 7%, but had a slight drop to finish the week

MBS Dashboard - MBS Prices, Treasuries and Analysis

View MBS prices and charts and follow the day's market activity with Micro News and Commentary.

www.mortgagenewsdaily.com/mbs

🔍 Coming this week: All eyes are on the big jobs report that will tell us how hot this economy really is

U.S. Economic Calendar - MarketWatch

U.S. economic calendar consensus forecasts from MarketWatch.

www.marketwatch.com/economy-politics/calendar

 The Media Part 

🥊 Elon Picks Another Fight, This Time With His Own Baby

Elon Musk has filed a lawsuit against OpenAI, the AI research organization he co-founded, alleging a departure from its original nonprofit mission. Musk claims that OpenAI, under the leadership of CEO Sam Altman and President Greg Brockman, has shifted focus towards profit, contrary to its founding principles.

Established in 2015 as a nonprofit endeavor to develop AI for public benefit, OpenAI received substantial funding from Musk, who later withdrew from its board in 2018 citing concerns over its direction.

The lawsuit asserts that OpenAI's actions, including the formation of a for-profit subsidiary and collaboration with Microsoft, deviate from its intended purpose. Musk specifically objects to the licensing of OpenAI's GPT-4 AI model to Microsoft, alleging a breach of nonprofit obligations.

While Musk's motivations have been questioned, with some pointing to his own AI startup, xAI, as a potential competitor, OpenAI has refuted the allegations. Chief Strategy Officer Jason Kwon expressed disagreement, while Altman lamented the departure from a focus on technological advancement.

Musk's apprehensions regarding AI's risks are notable, as he has previously voiced concerns about its potential dangers. Despite participating in a call to pause testing of powerful AI systems last year, OpenAI maintains its commitment to safety in AI development.

The unfolding legal battle between Musk and OpenAI marks a significant moment in the intersection of technology, ethics, and business.

Well that’s it for the best (and likely only) Mortgage AND Media Newsletter out there. This week instead of calling clients, spend your days calling your Washington reps and tell them to get their 💩 together before all of it hits the fan!

And as always, I’m happy to help you and your clients with anything mortgage, marketing, or social media. See you next week and

Thanks for reading!

John Birke | Mortgage Advisor | Content Coach

NMNLS 1150795

Movement Mortgage
9726 Old Bailes Road, Suites 121 & 130, Fort Mill, South Carolina 29707

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