The Bowtie Economist's Daily Dose of 70-Word Wisdom

The Friday file: On 7/26/1903, Horatio Jackson was the first to cross the US by car. The journey from San Francisco to Manhattan with a mechanic took 63 days. The current record is 25 hours and 39 minutes, set in…

The first estimate for 24Q2 real GDP came in at a surprisingly strong 2.8% annualized rate, well above expectations of, at most, 2%, and well up from 1.4% in 24Q1. The result was due to rising inventories, strong consumer spending…

The cost of virtual consultation with a primary care physician is $99. Seeing the same doctor in their office raises the cost of service to $170. If you go to an urgent-care center/clinic the cost to provide care rises to…

For the year end 3/24, foreigners purchased 54,300 homes, down 36% Y-o-Y, and the lowest number since recordkeeping began in 2009. The biggest impediments; a strong dollar and limited inventory. Dollar volume fell 21% to $42 billion despite an average…

While June housing starts were up 3% M-o-M to a 1.353-million-unit annualized rate, the rise was all volatile multifamily driven. Single-family starts fell 2.2% and are now down four months in a row. Moreover, June starts came in at 980,000…

Yesterday’s release of the Fed’s Beige Book, covering economic activity from mid-May through the end of June, will not be a best seller. While seven Fed districts exhibited growth, five districts recorded “flat or declining activity”. That is down from…

The state average mortgage interest rate varies from 3.8% in Colorado and Utah to 4.5% in Mississippi and West Virginia. Eight states are at 4.3% including FL, NY, and TX. General average rates rise as you move east. The variation…

Traditionally, house prices have declined when months-of-inventory exceeds six months. However, in 2022 we saw prices fall for seven months despite months-of-inventory in the 3s! That was probably a knee-jerk reaction to rapidly rising rates and memories of 2008/09. Months-of-supply…

Inflation, as measured by the CPI, declined 0.1% in June, the first M-o-M decline since 5/20 as inflation pressures continue receding. Y-o-Y inflation was 3.0%, the lowest reading since 6/23. Core inflation, a better measure, rose a scant 0.1% M-o-M,…