Wednesday's Scoop: Drift☀️

Hey friend - we’ve got some hot fresh scoops for ya.

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

1. Home prices are still breaking records.

2. High mortgage costs have deterred home buyers.

3. Businesses invested more last month, showing confidence in the economy.

Unemployment Rate: 3.9%
^{Still near the lowest rate in 50+ years}

Businesses spent more on self-improvement in February despite facing hurdles with high borrowing costs. The Commerce Department reported orders for durable goods, which includes anything from computers to trucks that last more than three years, rose by 1.4% in February. Companies invested much more than economists expected in machinery, consumer transportation, and motor vehicles. The increase in business investment could signal a turnaround in the struggling manufacturing sector.

30yr Mortgage Rate: 6.9%
^{That’s up from 6.5% a year ago. (MBA)}
Median Home Price: $384,500
^{That’s up from $364K a year ago. (NAR)}

High mortgage costs have stalled home buyers. The Mortgage Bankers Association reported that mortgage applications to buy a new home fell last week despite it being a high-volume home shopping season. Applications are 16% lower than a year ago, even though mortgage costs are only about half a percentage point higher. Home affordability remains very low amid high home prices.

Home prices keep climbing to new records as low supply outweighs falling demand. According to data from S&P CoreLogic Case-Shiller, home prices rose 0.4% from December to January to the highest level on record going back to 1987. Homes now cost 6% more than they did the year before. Climbing mortgage rates have deterred buyers, but the lack of homes on the market has kept prices from falling. Homeowners have avoided selling to hang on to their cheaper mortgages.

The Market: ⬆️ +0.9%
S&P 500: 5,248.49
1Mo: +4% | 1Yr: +32% | 5Yr: +85%

The market continued wavering around the same place on Wednesday. Investors are just hanging around during the short market week, waiting for month and quarter-end data to hit next week. Earnings season will be a critical peak into the state of the economy.