The Daily Valet. - 9/16/22, Friday
✔️ Where It Stops, Nobody Knows
Friday, September 16th Edition
I’m ready for the weekend. How about you?
Cory Ohlendorf , Editor ⋯ @coryohlendorf
Today’s Big Story
Mortgage Rates Jump Again
On the rise since the start of the year, they just topped 6% for the first time since 2008
The average 30-year home mortgage rate has climbed to 6.02%. It’s the first time the figure has surpassed 6% since the fall of 2008, according to new data from mortgage giant Freddie Mac.
The last time rates were this high was in the heart of a serious financial crisis, when the U.S. was deep in recession. The new rate level—which clocks in at more than double what it was a year ago—is an effect of the Federal Reserve’s aggressive campaign to raise interest rates as it works to fight inflation.
The Federal Reserve does not set the interest rates borrowers pay on mortgages directly, but its actions influence them. Mortgage rates tend to track yields on 10-year U.S. Treasury bonds. As investors see or anticipate rate hikes, they often sell government bonds, which sends yields higher and with it, mortgage rates.
The rising rates could dissuade prospective homebuyers, and particularly first-time buyers, from pursuing ownership. The climbing rates have sent demand for mortgages plummeting compared to last year. Already, higher rates are forcing some would-be buyers to continue renting or to skimp elsewhere, reports the Wall Street Journal.
They break it down like this: A borrower who bought a $500,000 house last year with a 20% down payment and a rate of 2.86% could expect to pay about $200,000 in interest over 30 years. If they were to buy the same house today when the rate is 6.02%, the amount of interest paid more than doubles to a whopping $465,000 in interest alone.
And if higher rates cause more homeowners to remain in their homes—unwilling to trade in their affordable mortgages for costlier ones—housing inventory could tighten further. That’s why property values will not fall very much, Freddie Mac Chief Economist Sam Khater told NBC News. There could be other ripple effects, too. With fewer home sales and more people continuing to rent, that will likely lead to rent costs going up as well.
↦ Dig Deeper: Axios looks at three reasons why it is getting harder for renters to buy a home.
Special Master Appointed in Trump Records Case
Judge denies DOJ request to regain access to classified documents seized by the FBI
A New York federal judge was selected on Thursday to serve as an independent arbiter to review the 11,000 documents seized in the FBI's search of former President Donald Trump's Florida home.
At the same time, U.S. District Judge Aileen Cannon rejected the Justice Department's bid to resume its criminal investigation into the classified documents. According to CNN, the denial “sets the stage for the department's dispute with Trump over the search to move quickly to an appeals court and potentially the U.S. Supreme Court.”
The Justice Department had previously stated that they didn't want the special master to have access to classified material, but Cannon has said that request is meritless. But she did say that the court would direct the special master to prioritize the “approximately 100 documents marked as classified.”
That raised the possibility that the special master might quickly clear the items and the F.B.I. would then regain unrestricted use of them in its criminal inquiry. In her order, Judge Cannon said the review should aim to finish by Nov. 30.
↦ FYI: What are special masters? Why are they appointed? Here is an explanation for a closer look and what will go down.
GOP Governors Ship Out Migrants
It’s the latest attempt to provoke outrage over record arrivals at the border
White House officials and Cabinet members will meet this morning to discuss a range of pressing immigration issues—including litigation options to respond to Republican governors transporting undocumented immigrants from the border to other parts of the country.
According to Axios, news that Florida Gov. Ron DeSantis chartered two planes to fly a group of migrants—mostly Venezuelan—to Martha's Vineyard has triggered a wave of backlash from Democrats and immigration advocates, with many condemning the move as political and inhumane.
It's the latest in a series of moves by Republican governors to transport migrants to northern liberal enclaves to protest what they say are inadequate federal efforts on southern border security. Govs. Greg Abbott of Texas and Doug Ducey of Arizona have for months been busing thousands of migrants and asylum-seekers from their border states to New York, Chicago and Washington, D.C.—including 100 that were bussed to Vice President Kamala Harris' doorstep yesterday.
Esquire's Kate Storey says the flights and buses echo a racist stunt from exactly 60 years ago called “the Reverse Freedom Rides.” But it is forcing some Democratic leaders to adjust policy in order to process the unexpected arrivals. Washington's mayor, Muriel Bowser, declared an emergency last week to free up $10 million in funds after the Pentagon rejected her requests for help from the National Guard.
↦ FYI: Border crossings by undocumented migrants dipped slightly over the summer, down from May’s historic high of more than 240,000 in a single month.
Designing a Better World
Fast Company honors those innovating, creating new products and reimagining spaces for the future
Innovation is inherently optimistic. Technology comes with an innate promise of a better future, right? We rely on gadgets and subscription services because they make life easier and more fun.
That's also similar to the promise of capitalism, says Fast Company. “Whether it's the release of another iteration of the iPhone or a wave of COVID-19 vaccines formulated to keep up with emerging variants, the prospect of the next big thing provides us with an alluring sense of optimism. But it's also turned us into short-term thinkers awaiting our next fix.”
The 46 winners of this year's Innovation by Design Awards—chosen by Fast Company editors, alongside an expert jury of design professionals—represent an alternative to the “what's next?” design strategy, trading short-term solutionism for long-term, considered thinking.
From a streamlined healthcare app and a smartphone that you can disassemble with a standard screwdriver to a floating wind farm that uses 126 turbines and is designed for deep water, the future these designers are envisioning does, indeed, look bright.
↦ Dig Deeper: See all the innovative uses of materials, graphics and clever industrial design to solve packaging problems in the Packaging Design category.
In Other News
Other Things We’re Talking About Today
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A Weekend Pairing
‘Los Espookys’ + a Blue on Blue Cocktail
We've waited three long years for the resurrection of Julio Torres, Ana Fabrega and Fred Armisen's trope-defying comedy series, Los Espookys, and now it's finally stirring from its pandemic-induced slumber. The zany, absurdist dark comedy, featuring a predominantly Latino cast, returns for a second season on HBO and HBO Max today.
The critically acclaimed half-hour bilingual series continues to follow an eccentric friend group that attempts to turn their mutual love of all things horror into a legitimate business venture. While group leader and gore enthusiast Renaldo is haunted by the ghost of a murdered beauty pageant queen, Andrés tries to find his place in the world after appeasing his inner demons (literally). The first season has a 100% certified fresh rating on Rotten Tomatoes, but critics say it's hard to predict what's in store for this season, “given that the first run featured such a unique mix of supernatural fantasy and low-key hangout comedy.”
↦ Your Pairing:Did I choose this Blue on Blue cocktail simply because the hue matches Andrés' blue hair? Yes. Is it still a tasty drink worth mixing up at home? Also yes. It's a mix of vodka, coconut water and cranberry juice, plus a shot of Blue Curacao—the end result is a refreshing drink that tastes similar to a Cosmopolitan but looks like you're sipping Windex.
What We’re Buying
A perfect Fall chore coat for under $100. Wear this with matching pants or some well-worn denim.
↦ Get It: $89.99 / $53.99 by Dickies
Partner
A Tasty Way to Boost Productivity
It almost sounded too good to be true. Increased clarity, mental focus and energy with just one daily gummy? But these aren't your everyday vitamin chews. ASYSTEM's popular Productivity Gummies are an all-natural supplement that offers five or more hours of a brain boost through clinically-backed ingredients—Suntheanine, powerful nootropics and B vitamins. I've been popping them for more than a month now and can confirm that you're able to stay on track at work without any jitters and there's no crashing. In fact, I quickly noticed that I was consistently getting through my to-do list without much stress. The fact that they're delicious and come in a stylish metal case? That's just an added bonus.
↦ Try It: Productivity gummies, from $40 by ASYSTEM
Morning Motto
Self doubt isn’t always a bad thing.
↦ Follow: @danielarsham
That’s all for today...
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