August 2023 – Page 2 – DIGIWIZ CENTRAL

The Former Whiz Kid Behind Tech Billionaires’ Plan to Build Utopian City

Photo Illustration by Thomas Levinson/The Daily Beast/Getty

The mastermind behind a mysterious plan to build a new city in California is a former Goldman Sachs wunderkind who quoted Ayn Rand, revered Peter Thiel, and wowed the finance industry before abruptly dropping out of the spotlight to secretly recruit billionaire investors.

For six years, a company called Flannery Associates has been buying up thousands of acres of land in rural Solano County in hopes of turning it into a walkable metropolis outside San Francisco. While the company was shrouded in mystery, The New York Times unveiled its top financial backers last week, among them venture capitalists Michael Moritz and Marc Andreessen, LinkedIn co-founder Reid Hoffman, Stripe co-founders Patrick and John Collison, and Emerson Collective founder Laurene Powell Jobs. The driving force behind this titan-backed utopia, according to the Times, is Jan Sramek.

Despite the secrecy of his latest venture, Sramek, 36, didn’t always shy from the limelight. In 2009, at age 22, he was named Financial News’ youngest ever “Rising Star”—similar to a Forbes 30 Under 30, but for the finance sector. A glowing profile of Sramek on the website, which was picked up by outlets from The Guardian to New York magazine, boasted that on top of working at Goldman Sachs, Sramek also trained for marathons, founded three startups, never smoked and rarely drank. Business Insider, in a piece naming Sramek one of their inaugural “Top Three Traders Under 30,” reported that “informed sources suggest that Sramek’s mentors include several of London’s most powerful hedge fund managers who are clearly grooming him for the very top.”

Read more at The Daily Beast.

Jacksonville Gunman’s Initial Target May Have Been Different: Cops

Sean Rayford/Getty Images

The Florida man who gunned down three Black people before fatally shooting himself at a Dollar General in Jacksonville on Saturday may have initially targeted a different store, authorities said Monday in a press conference that saw them lay out the most detailed timeline of the racially-motivated hate crime yet presented to the public.

Ryan Palmeter, 21, was captured on surveillance video pulling into a Family Dollar around 12:23 p.m., Jacksonville Sheriff T.K. Waters told reporters. The Family Dollar is approximately a mile away from the Dollar General.

The footage, released by Sheriff Waters Monday, shows Palmeter walking toward the store with a mask over the lower half of his face. He holds the door open for a number of Black customers exiting and entering the store, including a child.

Read more at The Daily Beast.

I hate walking, so I tried to rewire my habits with a free app. It works — but I’m still torn about recommending it for 3 reasons.

Yes, I’m very proud of my planet collection.

Insider/Kai Xiang Teo

Walkr is a Taiwanese gamification app that incentivizes users to walk by rewarding them with planets.
In my experience though, the app motivates you to walk more through peer pressure than gamification.
Much as I loved my experience of using it, I think this is not my cup of tea.

The core premise of “Walkr: Fitness Space Adventure” is simple: the more you walk, the more “energy” you collect, which you can use to speed up the discovery of a new planet for your collection.

The app, released by Taiwanese developer Fourdesire in 2014, is free to use and allows users to collect planets that range from the adorable Dream Tapir, to the delicious-looking Dessert Saturn and the bizarre Planet Radish Head.

After consistently hitting 10,000 steps a day during my three months with the app, I can confidently say I feel good.
I love that the detours I go on in my quest for more planets clears my head, gives me time to think about my day, and gets me out of the sedentary desk worker routine.

Much as I loved my experience of using it, I’m torn about recommending this app for three reasons.

1. A step counter doesn’t really need to be this complex

Screenshot of Walkr’s “Lab,” “Epics,” and “Satellites” features

Insider/Kai Xiang Teo

When I was first introduced to Walkr by a Taiwanese friend, he spent the next hour explaining the app’s dizzying array of features.

It went like something along the lines of, “So each planet has seven levels, and at first you can upgrade them with coins, but eventually, you’ll probably want to start using labs. But I wouldn’t worry about that right now, because you can’t use labs or epics until you get more levels and planets anyway…”

When I first started using it, I was swamped by the game’s features, which feature little explanation and include “epics” where you work together with other players to meet goals, “satellites” you can collect to match with your planets, and “labs” for users to pool their energy together to upgrade planets.

Even though I wound up meeting the app’s goal of 10,000 steps a day, 5 days a week, it is one surprisingly complex step counter.

2. Peer pressure was a bigger motivator for me than the planets

Screenshot of the game’s co-pilot feature, and how energy is used to speed up the discovery of new planets in Walkr

Insider/Kai Xiang Teo

The more I used Walkr and brought new friends into the planet-collecting fold, the more it became clear that the app is less about motivating you with gamification and more about pushing you with peer pressure.

Walkr has a co-pilot feature, allowing your friends to gain some of the energy that you generate from walking — I added three close friends as co-pilots shortly after first downloading it.

This created an interesting side effect: irate friends noticing I haven’t been walking much lately, and who began badgering me to walk more.

It worked both ways — I found myself pushing friends to walk more too.

3. You might not be into “extrinsic motivation”

Yes, I enjoy the exploring the great outdoors, but I’d enjoy it even more if I’m also collecting planets while I’m out there.

Insider/Kai Xiang Teo

When I tried pitching the app to a friend to score another convert and potential co-pilot, he started at me blankly and asked: “Why do you need planets to convince you to walk?”

I explained to him that — as ridiculous as it might sound — I love structured playtime. Basically, I’m driven by “extrinsic motivation,” or motivation that is driven by external rewards — like planets, points, or game achievements.

My friend, on the other hand, is a fan of “intrinsic motivation.” In other words, he does things because he enjoys the act of doing them. For him, walking is innately fun because he gets to be outdoors.

And I think this split in our opinions captures the essence of what makes gamification apps like Walkr right or wrong for you.

Those who enjoy walking probably didn’t need Walkr’s planets to begin with, but if you’re a structured playtime enthusiast like me, you’ll probably love gathering Walkr’s quirky collection of planets too.

Fourdesire CEO Wei-Fan Chen told Insider they’re still working on making the Walkr app more user-friendly and enjoyable to use, and are taking inspiration from user stories.

Read the original article on Business Insider

A massive Iranian missile attack on a US base offered a glimpse of the long-lasting injuries US troops will face in a war with Russia or China

Al Asad Airbase in Iraq’s western Anbar desert.

AP Photo/Nasser Nasser

In January 2020, Iran fired nearly a dozen ballistic missiles at an Iraqi base housing US troops.
No US personnel were killed, but more than 100 were later diagnosed with traumatic brain injuries.
Those injuries were a likely preview of US casualties in a future war, medical researchers say.

An unprecedented Iranian ballistic-missile attack in Iraq in January 2020 offered a worrying glimpse of the less visible but long-lasting injuries US troops will likely sustain in future wars.

Five days after the assassination of Iranian Gen. Qassem Soleimani in a US drone attack in Baghdad, Iran made good on its threats to retaliate by launching 11 ballistic missiles at Al Asad air base on January 8, 2020.

The hundreds of US troops at the base experienced what has been described as “the largest ballistic attack against Americans in history.”

The troops only received a few hours of warning, and the base had no air defenses capable of intercepting the missiles. As the 11 missiles, each carrying 1,000- to 2,000-pound warheads, rained down, some US soldiers were blown out of their positions in guard towers by the blasts. Other US troops huddled in bunkers built during the reign of Saddam Hussein.

Yet no US soldier was killed or suffered severe physical injuries. Their survival was described as “a miracle of God.”

US soldiers inspect damage from Iranian missiles at Al Asad air base on January 13, 2020.

John Davison/Reuters

But 109 American personnel at Al Asad were ultimately diagnosed with traumatic brain injuries, or TBIs, and will likely have recurring headaches and PTSD-related symptoms for the rest of their lives. Several of these troops were awarded Purple Hearts in recognition of their injuries.

US Army Maj. Robert Hales was the highest-ranking medical doctor on the base during the attack. In an interview with 60 Minutes over a year later, he said there is limited understanding of brain traumas such an attack can cause.

“There hasn’t been a lot of studies with this level of percussion wave, with the overpressure and the negative pressure that immediately follows being exposed to this, over and over again,” he said. “Just because this missile attack was so unique, as it never has happened in history that a ground force was exposed to 11 theatre ballistic missiles.”

Unfortunately, according to a report published in August by the Journal of the American College of Surgeons, TBIs will only become “more prevalent” among US troops in conflicts against a near-peer adversary, a term that refers to forces with capabilities similar to those of the US military.

Debris from Iranian missiles seen in a rural area near Erbil on January 8, 2020.

Al-Baghdadi township/Handout/Anadolu Agency via Getty Images

In its post-2001 wars, the US found itself fighting insurgents and terrorist groups who used unconventional tactics to counter the US’s military and technological superiority. US dominance of the air, ground, and sea “assured relative freedom of movement for medical evacuation” of wounded US troops, the report says.

Most of the 60,000 casualties, including 7,076 deaths, that the US suffered in those wars were caused by small-arms fire and less sophisticated weapons like improvised explosive devices, mortars, and small rockets. As the fighting in Ukraine has shown, a war against a near-peer adversary would almost certainly involve heavier and longer-range weaponry.

Some 70% of Ukraine’s combat casualties are from Russian artillery and rocket barrages, which cause “multiple high-velocity penetrating injuries, barotrauma, and blunt injuries from being thrown during the explosion” and, of course, TBIs, according to the report, which notes that attacks using IEDs “affected fewer patients, in general, and caused less severe injury.”

The report highlights the Al Asad attack as a “rare modern instance” of US troops facing near-peer adversary-level weapons and suffering significant numbers of debilitating TBIs as a result.

US soldiers carry a simulated casualty to a helicopter during a medevac exercise in Vermont in August 2017.

US Air National Guard/Tech. Sgt. Sarah Mattison

Moreover, it would be much harder to evacuate wounded personnel from the battlefield, given the likelihood that a near-peer adversary will field long-range sensors and weapons capable of reaching far behind the frontline.

This is especially true of air evacuation. The war in Ukraine has shown how tough air operations would be against a near-peer adversary, and recent campaigns in the Middle East provide examples of how even less capable enemies can use cheap drones to contest the airspace over the battlefield.

Small and medium-size drones are proliferating in the Middle East and “present a new and complex threat to our forces and those of our partners and allies,” US Marine Corps Gen. Kenneth McKenzie told the Senate Armed Services Committee in April 2021.

“For the first time since the Korean War, we are operating without complete air superiority,” added McKenzie, who was head of US Central Command at the time.

As the likelihood of a war or even a limited conflict with a near-peer adversary rises and the US military’s longstanding advantages erode, it is increasingly necessary to develop techniques to prevent and treat TBIs. The Al Asad attack was a relatively small-scale demonstration of the lethal dangers that US troops will face on the battlefields of the future.

Paul Iddon is a freelance journalist and columnist who writes about Middle East developments, military affairs, politics, and history. His articles have appeared in a variety of publications focused on the region.

Read the original article on Business Insider

Caddie With Tourette’s Sues Luxe Westchester Golf Club for Discrimination

Photo Illustration by Elizabeth Brockway/The Daily Beast/Getty

A golf caddie with severe Tourette Syndrome claims the top brass at one of the nation’s toniest country clubs continuously humiliated him about his condition, ramping up the harassment—a rotting goose carcass was allegedly once left on the victim’s doorstep—until finally firing him over bogus claims he somehow played a role in the untimely death of a co-worker.

David Anderson, 44, was candid with the higher-ups at the Hudson National Golf Club in Croton-on-Hudson, New York about his battle with Tourette’s, as well as obsessive-compulsive disorder (OCD), according to a blistering lawsuit obtained by The Daily Beast. Regardless, Anderson’s symptoms, which included “exaggerated eye blinking, exaggerated eye rolling, jerking of the head and limbs, touching objects or other people, simple and complex tics, blinking in an unusual way, mouth movements, stepping in a certain pattern, throat clearing, and clearing of the nose,” were impossible to hide despite the medication he took to help control them, the suit contends.

But when the club’s golf director saw the prescription bottle on Anderson’s desk, he says he was tarred as a degenerate dope fiend, summarily placed on the club’s “‘do not serve’ alcohol list,” and later made to feel like a criminal later when a Hudson National employee fell ill while staying over at Anderson’s home, then died at a nearby hospital.

Read more at The Daily Beast.

Andie’s Epic Labor Day Sale Includes the Coveted Fanm Mon Collab

Scouted/The Daily Beast/Andie.

Scouted selects products independently. If you purchase something from our posts, we may earn a small commission.

If Andie swimwear wasn’t on your radar until now, you’ve discovered the inclusive, figure-flattering, and premium-quality brand at the perfect time. Not only is the brand’s annual sitewide Labor Day sale live (… and Andie doesn’t have sales very often), but its latest collaboration with Fanm Mon is included.

Following the company’s popular release with actress Mindy Kaling, Andie teamed up with luxury womenswear brand Fanm Mon to release a line of chic bathing suits, linen dresses, and cover-ups that will turn a stroll on the beach into a walk on a sandy runway. True to Fanm Mon’s signature Haitian-inspired embroidered designs, this collection has a floral flare that pairs beautifully with Andie’s signature silhouettes and suits with options that start at $72.

Read more at The Daily Beast.

Fox Host: Why Didn’t Biden’s Unity Message Stop the Jacksonville Massacre?

Fox News

Fox News anchor John Roberts wondered on Monday why white supremacist-linked shootings, such as the one that occurred in Florida over the weekend, are still happening—since Joe Biden vowed to unify the country once he was president.

In yet another racially motivated mass shooting, a 21-year-old white man opened fire on a Dollar General in Jacksonville on Saturday, killing three Black people before turning the gun on himself. According to authorities, who are investigating the massacre as a hate crime, the gunman wrote a series of racist manifestos and emblazoned his assault-style rifle with swastikas.

“We must refuse to live in a country where Black families going to the store or Black students going to school live in fear of being gunned down because of the color of their skin,” Biden said in a statement after the shooting. “Hate must have no safe harbor. Silence is complicity and we must not remain silent.”

Read more at The Daily Beast.

What Is the Spinal Condition That Made Adele Collapse Backstage?

REUTERS/Mike Blake

Pop superstar Adele is about halfway through a massive Las Vegas residency, but a health condition recently forced her to alter her performance.

According to The Sun, the Grammy winner revealed to fans during her show over the weekend that she had just suffered a sciatica attack and collapsed backstage.

“They picked my whole body up off the floor,” Adele explained to the crowd as she took a seat. “I am going to sit down and rest my sciatica.”

Read more at The Daily Beast.

California’s attorney general is suing a school district that’s forcing teachers to out transgender and nonbinary students to their parents

Attendees hold up signs at the Chino Valley Unified School District’s meeting discussing the policy on July 20, 2023.

MediaNews Group/Inland Valley Daily Bulletin via Getty Images

California’s attorney general is suing a school district over its policy that would forcibly out some LGBTQ+ students.
The new policy requires school staff to tell parents if their kids want to use different pronouns.
Thw lawsuit says the policy unlawfully discriminates against transgender and gender non-conforming students.

California’s attorney general is suing a school district that’s forcing teachers to out transgender and nonbinary students to their parents. 

The Chino Valley Unified School District — which has over 26,000 students — voted last month to approve a “parental notification” policy that requires teachers and school staff to alert parents if their kids want to use pronouns, names, or bathrooms, or join sports teams, that differ from their birth-assigned sex, the Los Angeles Times reported

California Attorney General Rob Bonta filed a lawsuit Monday against the district accusing it of unlawfully discriminating against transgender and nonbinary students. 

In a press release, Bonta’s office wrote that the policy puts these students “in danger of imminent, irreparable harm from the consequences of forced disclosures” which subject the students “to disparate treatment and harassment, including mental, emotional, and even physical abuse.”

Bonta’s lawsuit alleges that, during a meeting discussing the policy, the district’s board members said that transgender and gender non-conforming students have a “mental illness” and “perversion.”

The lawsuit also accuses the school board president of saying that these students’ parents need to take “non-affirming” actions so the kids can “get better.”

A spokesperson for CVUSD told Insider in an email that the district was not informed of the lawsuit prior to its filing on Monday, adding that it is currently “working with its legal counsel to review the lawsuit and its contents.”

The spokesperson continued, “I can share that the Parent Notification policy does protect transgender students by requiring staff to notify CPS/law enforcement if the student believes they are in danger or have been abused, injured, or neglected due to their parent/guardian knowing of their preferred gender identity.”

The lawsuit follows a spate of anti-LGBTQ policies being floated around the country, such as Florida Gov. Ron DeSantis’ so-called “Don’t Say Gay” law, which limits how schools can discuss gender identity and sexuality. 

Read the original article on Business Insider

‘Interest rates are killing our industry’: Here’s what businesses are saying about the Fed’s impact on the economy

Construction work on a new apartment building in Austin, Texas in February 2023.

Brandon Bell/Getty Images

The Federal Reserve’s interest rate hikes are having a negative impact on the economy.The Dallas Fed’s Texas Manufacturing Outlook survey included some choice words from respondents.“Interest rates are killing our industry,” said an executive from the transportation equipment sector.

The Federal Reserve’s aggressive interest rate hikes over the past year and a half are having a negative impact on the economy, according to the most recent Dallas Fed’s Texas Manufacturing survey.

The August survey found that the production index, which helps measure factory activity in the state, fell again in August, dropping 6 points to -11.2, the lowest level since May 2020. Weakness has also been seen in the new orders index, which has been in negative territory for more than a year. 

Federal Reserve Bank of Dallas

“Perceptions of broader business conditions continued to worsen in August. The general business activity index stayed negative but ticked up,” the report said. “Uncertainty regarding outlooks continued to rise, with the corresponding index remaining positive, though it fell eight points in August to its lowest reading in more than two years.”

The comments from respondents of the survey paint a mostly negative picture when it comes to the Federal Reserve’s monetary tightening policy and its impact on business.

“High interest rates are affecting industrial production like never before… interest rates have placed an inverted incentive to grow due to a major slowdown in capital equipment expenditures. This is the time to stop raising interest rates,” one survey respondent in the computer and electronic product manufacturing industry said.

Other survey respondents from the same industry said, “For the first time in a long time, we are seeing customers reduce or cancel orders due to softening end-use demand. We expect this trend to continue over the next few months” and “Customer orders came to a sudden halt. The overall volume dropped 51% year-over-year.”

An executive from the food manufacturing industry said “customer discretionary spending capability has decreased.” 

Warning signs of a slowing economy could also be seen in the machinery manufacturing industry, according to the survey.

A respondent from that sector said, “The phone is not ringing. Our sales team is working harder with less results. Projects are being postponed and, perhaps even more telling, payments are increasingly protracted.”

Finally, a survey respondent from the transportation equipment manufacturing industry had this to say about what the Fed is doing with interest rates: “Interest rates are killing our industry.”

Whether Fed Chairman Jerome Powell is listening to these concerns remains to be seen. He said at Jackson Hole last week that taming inflation still remains the top problem for the Fed to solve, and that further interest rate hikes might be necessary. 

Read the original article on Business Insider

How to clean your TV screen or monitor safely and keep the picture crystal clear

To clean a screen, you’ll need a good cloth.

PeopleImages/Getty Images

If you keep your TV or computer monitor in one place for a long time, it’s bound to get dirty. Even the best TVs are magnets for dust in the air, which can cause glare and dull the picture. And laptops that constantly get stuffed into backpacks are bound to pick up grime.

Depending on what kind of TV or monitor you have, the exact best way to clean it might change. But in general, these are the best ways to clean pretty much any display.

How to clean a TV screen or monitor

Before you do anything, remember to be gentle. TV screens and monitors are both sensitive, and high-definition TVs like OLED and LCD tend to scratch easily. Take care, or you risk causing problems bigger than just dirt and dust.

Unplug your TV or monitor before cleaning it. Unplugging the screen reduces any chance of electrical damage, and the dark screen makes it easier to see dust, dirt, hair, and grime. If you can’t unplug the display, just turn it off.Use a soft, dry cloth. Microfiber cloths are a great choice. You can pick them up cheaply online or in stores, and their soft material grabs dust and hair without scratching or leaving fibers behind. If a soft cloth came with your TV or monitor when you bought it, use that.Slowly wipe the screen in a circular pattern. If your TV is wobbly, you can hold the cloth with one hand and support your TV with the other. Again, be gentle: Don’t apply too much force with the cloth or push on your screen.

Shining light on the TV might help expose dust.

Chrissy Montelli/Insider

Wipe the sides and back of the TV or monitor. Your screen isn’t the only area that collects dust — wipe away any debris you can see on the frame and cables, especially in the back. You’ll also want to wipe down the ports and plugs. If you’re using any water, be sure to let everything dry before you start plugging cables in again.If you need to clean the screen more thoroughly, use a small amount of distilled water. Distilled water doesn’t have any minerals in it, reducing the risk of scratching your screen. Don’t ever pour or spray water directly onto your screen. Instead, dampen your cloth slightly and gently wipe the mess. For caked-on messes, you can use a tiny drop of mild dish soap on your cloth. And after you’ve cleaned it, go over the screen once more with a soft dry cloth just to be safe.If there’s a caked-on spot on the frame, do the same. Just make sure not to get any liquid in the cracks or ports.Don’t use harsh chemicals. Harsh chemicals can damage your screen, and any moisture that drips into gaps in the frame can potentially cause an electrical fire. If you feel that distilled water isn’t enough, you can try specially made screen cleaning solutions, like this cleaner from Austere.

Read the original article on Business Insider

The Fed may have destroyed the housing market by crushing both supply and demand, top economist Mohamed El-Erian says

Robert Galbraith/ Reuters

The Fed may have broken the US housing market, according to top economist Mohamed El-Erian.
That’s because interest rate hikes have helped drive up mortgage rates, weighing on both supply and demand.
 

The US housing market may be broken, and the Federal Reserve’s aggressive interest rate hiking cycle over the past year could be to blame, according to top economist Mohamed El-Erian.

“There’s a real issue as to whether we’ve broken the housing market,” the Allianz chief economic advisor said in an interview with CNBC on Monday, pointing to high mortgage rates weighing on the market. The average rate on the 30-year fixed mortgage notched a fresh 23-year-high last week, clocking in at 7.48%, according to Mortgage News Daily.

High rates have frozen the housing market over the past year by crimping both supply and demand. Many prospective buyers are priced out of the market due to higher costs of borrowing. Meanwhile, existing homeowners are discouraged from putting their properties up for sale, as many are looking to cling onto the low interest rates at which they financed their homes years ago. This has kept prices elevated even as demand slips. 

The result is a housing market in a state of limbo, with affordability unlikely to improve unless mortgage rates dial back more significantly, experts say.

“When you go from record-low mortgage rates to levels that we haven’t seen for almost 20 years, you’ve destroyed both demand and supply. And that’s the irony, is that supply has come down and demand has come down as well. That is the way you destroy the housing market,” El Erian said. “We’ve got to be really careful because the housing market is central to the economy.” 

Mortgage rates have been pushed higher by the Fed’s aggressive interest rate hikes over the past year, with central bankers raising rates 525 basis-points to tame inflation in the economy. Short-term rates are now the highest they’ve been since 2001, which economists have warned could push the economy into a recession.  

El-Erian, for his part, has been a loud critic of the Fed’s monetary tightening over the past year. Previously, he said the US faced an “uncomfortably high” probability of a downturn, though the central bank couldn’t afford to cut interest rates prematurely. That could risk inflation expectations spiraling out of control, slamming the economy with a far more serious stagflation problem.

Prices accelerated 3.2% in July, down significantly from the peak of 9.1% hit last summer. 

Still, El-Erian warned that inflation could rebound over the short-term, thanks to persistent services inflation and wage inflation. That could result in the Fed’s inflation target quietly drifting to 3% as central banks are forced to tolerate higher-than-ideal prices in the economy, he added.

Read the original article on Business Insider

A key stat suggests the housing market won’t see ‘cascading’ price drops anytime soon

Newsday LLC / Contributor/Getty Images

Fannie Mae reported that the single-family serious delinquency rate is down 0.54% in July. 
The latest reading is below the pre-pandemic low of 0.65% and the lowest rate since 2002.
Housing expert Bill McBride pointed to the data as reason not to expect widespread home price declines. 

The unaffordable housing market doesn’t look like it will see widespread price declines in the near future, according to the some of the latest mortgage delinquency data. 

In July, the rate of single-family mortgages that were considered “seriously delinquent”—defined as late on payments by 90 days or more, or already in foreclosure—was unchanged month-over-month at 0.56%, according to Freddie Mac, though the rate was down annually from 0.73% since July 2022.

For Fannie Mae, the other government-backed mortgage finance giant, serious delinquencies fell to 0.54% in July from 0.55% in June. 

In a Monday edition of his newsletter Calculated Risk, veteran real estate expert Bill McBride pointed out that this is the lowest rate since before the housing bust of 2008, as well as below the pre-pandemic low of 0.60%. 

“Freddie’s serious delinquency rate peaked in February 2010 at 4.20% following the housing bubble and peaked at 3.17% in August 2020 during the pandemic,” McBride wrote. 

Single Family Serious Delinquency Rates

Calculated Risk

The decline in serious delinquencies point to low rates of foreclosures, which in turn suggest stable prices. Homes that are sold in foreclosure are often priced lower, as lenders are aiming to make their money back. The dynamic was on display in 2008, when a wave of bank foreclosures dragged the US housing market down, with prices plummeting as much as 20% in parts of the country. 

It’s worth noting, too, that the numbers from Fannie Mae and Freddie Mac are highly representative of the US mortgage market as a whole, as a majority of mortgages—65%, by the Fed’s calculations—are packaged into mortgage-backed securities issued by the two agencies.

Here’s what the delinquency numbers say, in McBride’s words: 

“Since lending standards have been solid and most homeowners have substantial equity there will not be a huge wave of single-family foreclosures this cycle. This means that we will not see cascading price declines like following the housing bubble.”

McBride, who Business Insider has profiled in the past as the inventor of “the economics blogosphere,” publishes regular housing market updates ranging from trend pieces to more granular data, such as delinquency rates or multifamily starts. 

Read the original article on Business Insider
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