JCDI
Short-term Certificates of deposit have continued to drop. Our high 1-year at 2.50% dropped to a 2.00%. The next highest rate, 2.35% APY, held for a week, but then dropped below 2.00%. Some of the big boys have continued to adjust rates down. Some long-term rates have inched up a bit. At the beginning of the month we had a 5-year CD at 3.70% APY. It stands today at 3.80% APY. Of course, 5-year CDs may not be the best idea right now unless you have a great ladder or the penalty is low for closing the CD early. The other side of the coin, we just don't know when the rates will be increasing. The Fed is talking like it could be a while.
Residential property continues to see weaknesses. Thousands are still facing rate re-sets and they have no way to refinance because their home is worth so much less. Many states had issued moratoriums on foreclosures and those are beginning to expire. Banks have been trying to hold off showing losses, but they can only do that for so long. The June data for many banks looks worse than March's.
Commercial real estate is going to potentially be the next big problem. Many developers built small business complexes expecting them to be leased by entrepreneurs looking to serve all of the new homeowners. As the complexes remain empty, the commercial property owners can't afford to continue to take the losses each month. Many are letting them go into foreclosure or selling for steep discounts.
So do I have any good news. The workweek as reported for average hours worked increased a little. Income overall snuck up 0.1%. And my kids' soccer team, the Big Dogs will be starting in Div. B in a couple of weeks. Our highest start ever. Yes, I am a very proud coach and father. So how about you guys?
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