(KRON) – On today’s winners and losers, financial expert Rob Black talks the bear market, the crypto sell-off and the five things you need to know about the housing market.
Loser: Stocks struggle for direction after S&P 500 hits bear market
The Standard & Poor’s 500 is in a bear market. Bear markets used to be normal, typically once every 4 years, but during the last 10 years we really haven’t had to deal with them.
The Fed’s policy-setting committee is expected to announce a half-point rate rise when it concludes its meeting on Wednesday, which would bring its benchmark rate to 1.5%.
The 10-year Treasury note pulled back from Monday’s 11-year high to hover around 3.4%.
Airline bookings slipped again in May, with fares 30% higher than 2019
Wells Fargo at a conference said second quarter mortgage banking revenue could be down 50%.
Elon Musk will be meeting with top Twitter brass Thursday.
Coinbase laid off 18% of workforce as executives prepare for a recession and a “crypto winter.”
Loser: Bitcoin tumbles as crypto sells off
Cryptocurrencies keep sliding. The price of Bitcoin fell 8% over the past 24 hours to $22,800.
The largest digital asset first slipped through the key $30,000 mark on Friday, declining steadily to $27,000 by Sunday before making a precipitous fall to $24,000 on Monday.
Bitcoin dropped to its lowest point in 18 months and is continuing lower.
Over the weekend, Bitcoin plunged to its lowest point since December 2020 to trade below $25,000.
The token is about 65% below the record high of $69,000 it reached last November.
Other tokens, including ether, cardano, solana, and dogecoin, also collapsed.
Crypto is supposed to outperform when we see inflation; it is doing the opposite.
Not good. Crypto lender Celsius said Sunday it would pause withdrawals alongside its swap and transfer products, citing “extreme market conditions.”
Treasury Secretary Janet Yellen last week called for tighter regulation of the crypto industry. She said cryptocurrencies were a “very risky investment.”
Bitcoin is attempting to form a base, but if price action falls below the $20,000 level, it could get even uglier.
Loser: Five things to know about the housing market
As mortgage rates inch upwards and home prices keep climbing, many buyers are wondering: What should I know about the housing market now?
- Buyers need to rerun numbers as mortgage rates rise: A buyer may want to revisit their budget and calculate sales prices and current mortgage rates.
- Inventory shortages persist: The US is 3 million homes short of meeting buyer demand. Low inventory will continue to drive up prices.
- Home prices in general will remain high: Lenders appear to be vetting borrowers more rigorously and borrowers’ credit scores remain near record highs at 776.
- High prices in the burbs: The pandemic meant people ditched their pricey metropolitan digs. Suburban home prices have outpaced downtown home prices.
- Some buyers may want to consider a 5-year adjusted rate mortgage: Consider that 5 or 7-year ARMs carry lower interest rates than the standard 30-year mortgages. The average rate for a 5-year ARM is just 3.90% compared to an average rate of 5.57% for a 30-year fixed mortgage.