Rocket Fuel Newsletter – 06/10/2024
Looking for more space for you, your partner, and your 18 kids? You’re in luck – a 500-year-old mansion is up for sale in England that once housed a nobleman and his entire 20-person family.
In this edition: June is National Homeownership Month, big news involving the beloved Costco hot dog deal, and challenges to overcome when selling adjustable-rate products.
Take a look at the manor big enough to fit two baseball teams!
Fuel Up! 🚀
Celebrating National Homeownership Month
June marks the 22nd Annual National Homeownership Month, a time to raise awareness about and celebrate the benefits of owning a home. Recent data from the Federal Reserve Economic Data (FRED) indicates that homeownership for Q1 2024 sat at 65.6%. Although slightly down from the previous quarter, the general trend over the past decade shows a steady increase, reflecting the enduring desire for homeownership.
Mortgage Applications Decrease in Latest MBA Survey
According to the Mortgage Bankers Association’s (MBA) latest weekly survey, mortgage applications fell by 5.2%. This includes adjustments for Memorial Day, with both purchase and refinance volumes seeing declines. Notably, the seasonally adjusted refinance index was down 7%, while the purchase index dropped just 4%. Despite slightly higher mortgage rates, first-time home buyer demand offered some support to the market.
Read more about the latest survey here!
Costco’s $1.50 Hot Dog Combo: Standing The Test Of Time
Fear not, hot dog lovers! Costco’s iconic $1.50 hot-dog-and-soda combo isn’t going anywhere. Since the mid-1980s, this delicious deal has resisted inflation, which would have driven the price up to about $4.40 today. Despite occasional rumors about a price hike, new CFO Gary Millerchip has confirmed the price is safe. Costco’s strategy of keeping these staples affordable keeps customers happy and loyal, ensuring that a tasty, budget-friendly treat is always available.
Read more on the Costco hot dog saga!
Adjustable-rate mortgages (ARMs) made up 6.7% of all new home loan applications to lenders, according to the Mortgage Bankers Association (MBA). Although this percentage shows a slight increase in ARM applications since the last report in late May, it’s a decrease from just a year ago when ARMs made up 9% of all new mortgage applications. Moreover, Google trends have shown a fairly steady rate in searches for adjustable-rate mortgages as interest rates have fluctuated over the last several months, with searches for this term peaking in both November and April.
With interest rates and home prices still high, adjustable-rate mortgages offer another option for prospective home buyers to explore in this housing market. However, according to a recent survey by Rocket Mortgage, home buyers remain confused and unsure of exactly how an ARM works and if it would be a good choice for them.
- JOLTS Report – Job Openings And Labor Turnover
- Consumer Spending Report
- Fed Beige Book – May ‘24
- Bond Traders Pile Into Fresh Bets On Faster Pace Of Fed Cuts
- U.S. Job Openings Fall To Lowest Since 2021 In Broad Cooldown
Nearly 70% of all solvers finished last week’s puzzle in less than 2 minutes – good solving! At the top of the leaderboard, Jim’s time of 21 seconds narrowly beat both Bret and Ali W. by just 1 second.
This week’s puzzle gets 3 Rockets out of 5.
