- Today's Scoop:
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Here’s what you need to know today…
The government asked for another shutdown extension.
More Americans own their homes outright, protecting them from higher rates.
Construction keeps chugging amid a housing shortage.
The Market: ⬆️ +0.7%
S&P 500: 4,547.38
1Mo: +8% | 1Yr: +15% | 5Yr: +73%
The market floated higher for the fifth day today as investors maintained passive optimism.
The government narrowly avoided another shutdown by procrastinating again. Congress passed a short-term funding bill that maintained the same spending levels to keep the government open and operating while delaying the need to finalize negotiations on this year’s spending plan until January for some departments and February for the rest. This is the second time in two months that Congress has opted to delay negotiations for their annual budget, pushing the final resolution at least four months past the deadline.
More Americans now own their homes outright. According to the Census Bureau, the percentage of mortgage-free homes in the United States rose to a record of just under 40% last year. A majority of these homeowners are retirement-age baby boomers who locked in interest rates at a fraction of what mortgages cost today. Low or no mortgage costs make homeowners much more resilient against the rising rates making homes less affordable today.
Home construction increased in October, but it might be short-lived. The Commerce Department reported a surprising jump in permits and construction for new homes last month. Permits for future single-family homes rose to the highest level in nearly 1.5 years as builders looked to fill the massive shortage of available homes. Multi-family home construction keeps surging, but vacancies have reached a 2.5-year high. Amidst low home affordability, homebuilders have turned more pessimistic. This could signal lower rents and less construction ahead.
How are you feeling about the economy?
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Inside Scoop 🤓
What is a Continuing Resolution?
When Congress needs a last-minute extension for their main assignment, they pass a Continuing Resolution. A Continuing Resolution (CR) is a temporary funding measure used by the US Congress to keep the federal government running when the annual budget hasn't been finalized by the start of the fiscal year (October 1).
Instead of passing a full budget, Congress approves a CR to provide funds for a short period, allowing more time to negotiate and finalize the budget details. It typically maintains the previous year's funding levels for agencies and programs.