trends in the auto industry

Over the past two years, the pandemic has heavily impacted the market for both new and used vehicles. As the supply of new vehicles was constrained due to persistent supply chain problems, buyers turned to the used car market to satisfy their demand for transportation. Because of this demand, price increases in used cars significantly exceeded the price increases of new vehicles and for the first time in history we saw used automobiles become an appreciating asset, albeit very short lived.

This week's highlight article from Rational Reflections provides a quick history of the automobile industry, highlights the trends we see present today, and forecasts what the auto industry might look like in the future.

The State of the Auto Industry (Rational Reflections)

Outstanding Mortgage rates

Despite current 30-year mortgage rates well into 5% territory, the vast majority of homeowners have a mortgage rate below 4% with 1/3 of borrowers capturing a rate below 3%. This data has significant implications on future homebuying as many current owners may be reluctant to move and lose such an attractive rate, opting to "trade-up-in-place" and remodel their existing home instead.

What Else We're Reading

A moment for municipal bonds (goldman sachs)

What Happens to markets when a recession ends? (renaissance)

Navifating finances for a loved one with special needs (fidelity)

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