Elliot Eisenberg Economic & Policy Blog

Mortgage Matters The state average mortgage interest rate varies from 3.8 % in Colorado and Utah to 4.5 % in Mississippi and West Virginia . Eight states are at 4.3 % including FL , NY , and TX . General average rates rise as you move east . The variation exists due to credit scores , when mortgages were issued , and how difficult is for a lender to reclaim a house . The lower the average rate , the more serious the Lock-in .

Beige Book The release of the Fed ’ s Beige Book , covering economic activity from mid-May through the end of June , will not be a best seller . While seven Fed districts exhibited growth , five districts recorded “ flat or declining

activity ”. That is down from two six weeks ago , and is the same number , five , that presented in 1 / 08 and 3 / 01 , both months that were the onset of recessions that were unexpected .

Monthly Matter Traditionally , house prices have declined when months-ofinventory exceeds six months . However , in 2022 we saw prices fall for seven months despite months-of-inventory in the 3s ! That was probably a knee-jerk reaction to rapidly rising rates and memories of 2008 / 09 . Months-of-supply is now 3.7 months , up from 2.6 in spring 2023 . I suspect national prices start declining if months-ofinventory exceeds 5.0 months as so many homeowners have so much equity .

Infinitesimal Inflation Inflation , as measured by the CPI , declined 0.1 % in June , the first M-o-M decline since 5 / 20 as inflation pressures continue receding . Y-o-Y inflation was 3.0 %, the lowest reading since

6 / 23 . Core inflation , a better measure , rose a scant 0.1 % M-o- M , the mildest rise since 1 / 21 , and 3.3 % Y-o-Y , the lowest reading in three years . Critically , housing inflation is slowing . Collectively , this makes a September Fed rate cut an easy call .

Data Development The Friday File : In 2008 , data centers around the world collectively used almost 50 terawatts ( TWh ) of power . By 2012 usage had roughly doubled to almost 100 TWh , and by 2017 had doubled again to 200 TWh . At present , usage is 350 TWh , and were data centers to be a country they would be the 17th largest in terms of electricity consumption . Please remember to always search responsibly !

TSA Trave On 7 / 6 / 24 , 3.013 million people passed through US airport security checkpoints . This was the first time the total surpassed 3 million , is up 14 % from the same day Y-o-Y , and breaks the

previous record of 2.99 million set on 6 / 23 / 24 . Pre-Covid , the total was 2.5 million . Through 7 / 6 / 24 , 460.7 million persons have been screened , up from 430.1 million last year . It ’ s a combination of a strong dollar and falling airfares .

Data Development In 2008 , data centers around the world collectively used almost 50 terawatts ( TWh ) ofpower . By 2012 usage had roughly doubled to almost 100 TWh , and by 2017 had doubled again to 200 TWh . At present , usage is 350 TWh , and were data centers to be a country they would be the 17th largest in terms of electricity consumption . Please remember to always search responsibly !

Elliot Eisenberg , Ph . D . is an internationally acclaimed economist and public speaker specializing in making economics fun , relevant and educational . Dr . Eisenberg earned a B . A . in economics with first class honors from McGill University in Montreal , as well as a Master and Ph . D . in public administration from Syracuse University . Eisenberg is the Chief Economist for GraphsandLaughs , LLC , a Miamibased economic consultancy that serves a variety of clients across the United States . He writes a syndicated column and authors a daily 70-word commentary on the economy that is available at www . econ70 . com .

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