Wednesday's Scoop: Circling☀️

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Here’s what you need to know today to inform your work, spending, and investments:

1. Companies are investing record amounts in clean energy.

2. Mortgage costs keep climbing.

3. Homeownership has moved further out of reach for young Americans.

Global Energy Emissions: 37.4B metric tons of CO₂
^{An all-time high, up 1.1% from 2022. (IEA)}

Corporate America is investing in record levels of solar energy and battery storage, led by tech giants. According to the Solar Energy Industries Association, Meta is now the top corporate solar user with nearly 5.2 gigawatts (GW) installed—enough to power approximately 1 million homes. Google leads in energy storage with 936 megawatt-hours (MWh) of battery capacity, which can store enough electricity to power about 31,000 homes for a day. Target remains the leading onsite corporate solar user for the ninth consecutive year. In total, US businesses have installed nearly 40 GW of solar capacity through the first quarter of 2024, sufficient to power around 7.6 million homes. This surge is partly driven by the Inflation Reduction Act's clean energy incentives. However, experts note that investments must scale even faster to meet national goals to reduce fossil fuel pollution. This growing commitment to solar energy and storage helps the environment and could lead to more stable energy costs in the long run.

30yr Mortgage Rate: 6.9%
^{That’s down from 7.4% a year ago. (MBA)}
Median Home Price: $404,500
^{That’s up from $393K a year ago. (Existing Homes, NAR)}

Mortgage rates keep climbing. According to the Mortgage Bankers Association, the average interest rate for a 30-year fixed-rate mortgage climbed to 6.90% from 6.86%, the highest level since July. Despite the increase, mortgages are still much cheaper than last year and haven’t wholly deterred homebuyers. Applications to purchase a home increased by 2% last week but are still 1% lower than the same week last year. While higher rates typically deter buyers, more homes coming to market and concerns about rising rates have encouraged buyers to act. However, affordability is still a significant challenge.

Homeownership continues to move out of reach for young Americans. The National Association of Realtors reported that only 24% of home purchases between July 2023 and June 2024 were made by first-time buyers—the lowest on record. The typical age of first-time buyers rose to an all-time high of 38 years old, up from 35 last year and late 20s a generation ago. Near-record home prices, expensive mortgage rates, surging insurance costs, high property taxes, and rising homeowners association (HOA) fees make it harder for new buyers to enter the market. A record 17% of home purchases last year were for multi-generational homes; most reported doing it for cost savings or because their adult children were moving back in or never left. Wealthier individuals dominated more of the market than ever, with 26% of sales paid in cash. If you're looking to buy your first home, you’ll need to be prepared with more savings than prior generations.

The Market: ⬆️ +0.002%
S&P 500: 5,917.11
1Mo: +1% | 1Yr: +30% | 5Yr: +90%

The market wavered around flat on Wednesday as investors digested more mixed financial updates from America's biggest companies. Weak numbers from Target sparked concerns about the financial health of the US consumer, but other companies this week, from TJ Maxx to Walmart, offered some reassurance that there hasn't been a significant shopping slowdown.