Interest rates are up again this morning–the 10 year treasury yield is up 3 basis points to the 4.26% area–of course we are at levels not seen since 2008. Equity futures are off about .4%.
I’m ready for the weekend–it provides 2 days for mental restoration after getting beaten up by rising interest rates all week. The past week has been fairly brutal with my accounts hitting lows for the year–by just a little. On the other hand the end of the month is near so accounts will experience a bit of a boost when dividends and interest hit the accounts around the end of the month.
Today economic news is light with just the ‘index of common inflation expectations’ being released at 11 am (central). This index is released quarterly by the FED and is an ‘experiment’–a research project–whether it is meaningful or useful I don’t know, but it is worth paying attention to because I assume even though it is a research project the FED must look at it (at least a little?).
My appraisal work is slowing considerably — finally. Business is off 20% YTD, but all of that came in January and February. Home equity work has been heavy this year–essentially no refinancing. The ‘haves’ are still spending plenty on houses that are kind specific to older folks (like me)–patio houses (built on a slab–no basement). In my semi rural area new patio home subdivisions have sprung up and the upscale houses are typically $400,000 on the low end to maybe $800,000 for the larger very upscale properties. I just completed a report on a 2100 SF property with a cost of about $700,000 and I was shocked by all the cash deals happening in this new subdivision. Of course the ‘have nots’ have been on the sidelines for quite a while as there are no properties below the $200,000 area (unless you want a tiny condo). I am very much looking forward to having little appraisal work once the snow flies–with interest rates where they are once the snow flies in Minnesota we will likely see meaningful value drops and little activity. That means more time to get some long planned website work done.