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No More Rate Hikes?
February 2024 Update
Nathan Udomsri
February 19, 2024
Simple Highlights on Inflation
I listened to the 50 min Federal Reserve press conference, so you don’t have to! Below are highlights of the press conference. In case you wanted to listen to the whole thing, I linked it in the first bullet point.
⛰️ Federal Reserve confirms peak interest rate: During the January meeting they confirmed their policy rate is at it’s peak for this economic cycle.
📊 Looking for More Good Data not Better Data: Right before the 7 min mark of the conference, “It’s not that we’re looking for better data… We’re looking at [a] continuation of the good data that we’ve been seeing.”
📈+📉 CPI vs Core CPI for February: CPI inflation came in at 3.1% which came in hotter than expected. Core Inflation came in at 3.9%, which was the same as last month.
✂️ When the Federal Reserve says 3 rate cuts, where do I find that? This is the Economic projections straight from the Federal Reserve website.
Unaffordability at an All-Time High
🏫 Harvard University Study says 22.4 million renters are impacted: The report mentions a “record-high 22.4 million renters spent more than 30 percent of their income on rent and utilities.”
📰 Some Good and Bad News: My understanding of the report is there’s more new construction multi-family coming to market in 2024, which could help renters. For 2025+, there might not be much relief for renters because of how building costs, rates, etc have affected builders. Building new homes, there’s always delays, which is why I think there’s a lag period!
Talk soon,
Nathan
👇️ PS - More Below
Airbnb or Short-Term Rental Loans
📢 Generally speaking, Airbnb or Short-Term rentals have high income potential. However, when it comes to mortgage lending, it’s always been difficult to project how much you could earn on a consistent monthly basis. Especially if you’re starting a new property with zero reviews!
📊 There are loans out there that will use projected income from data sources like AirDNA for your property on Airbnb, VRBO, HomeAway, etc.
🤝 Who could this help? Someone who is wanting to take advantage of potential tax benefits of having an Airbnb, and also has a large down payment ~25%+
If you are a nurse 🏥, first responder 🚑, or someone who has varying type pay, it’s good practice to save your final year-to-date paystub. It’s the paystub that has the highest amounts in the “Year to Date” section.
Why does this help? It helps lenders accurately calculate overtime, differentials, etc. It also helps just in case an employer does not verify those details! 💼
January came and went quickly! I went to the mountains 🏔️ to ski for the first time in over 20 years! I had so much fun ⛷️, and managed to only fall twice! I also closed on the sale of an investment property 🏠 and have already found my next project 🔨 to bring to life!
Kicked off February on a high note 🎶! Signed up for San Diego's Rock 'n' Roll half marathon 🏃♂️. I also had the incredible honor of speaking to a squadron at the Coronado Navy base🎖️. Thank you to all that were there, I hope you learned something new.