Greetings,
The United States: The number of first-time homebuyers keeps climbing.
How do these new buyers come up with a 20% down payment amid surging home prices? The answer is that relatively few of them do. Instead, first-time homebuyers tap FHA, VA, and USDA loans. They also increasingly rely on mortgage insurance (MI). “Low down payment” is defined as LTV of 80 percent or higher.
The good news is that the mortgage insurance market is gradually reducing the government’s share of the first-time homebuyer market.
China: This chart shows the yearly changes in loan balances to nonfinancial corporations in China. Tighter monetary conditions have not shown up in this sector.
The Eurozone: French business activity has accelerated.
Equity Markets: Here is why analysts don’t think there is a bubble in tech shares.
Emerging Markets: India’s economy appears to be struggling as the service sector shifted into contraction again.
Bitcoin: Nobody wants Federal Reserve notes.
Energy Markets: Crude oil is expected to be in deficit for much of next year.
Food for Thought: Older workers in OECD countries.
Edited by Joseph N Cohen
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Thanks to Josh Marte (@joshdigga), Matt Garrett (@MattGarrett3), Joseph Cohen (@josephncohen), Ycharts.com, S&P Global, and Moody’s Investors Service for helping with the research for the Daily Shot.
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