In-case-you-missed-it Monday: the real stories that mattered in the financial papers this week.
Auction market heats up
The auction clearance rates in the capital cities continue to scorch, closing in on post-Covid highs. Buyers are confident and sellers are getting the prices they want. This is what the first phase of a boom looks like.
A big story in this is the rates outlook. The rates on new loans and outstanding loans are down about 35 basis points, following the RBA’s 50bps. But the rest will follow through soon.
Despite falling rates, there was a small pick up in Roy Morgan’s measure of ‘mortgage stress’. This probably reflects ongoing deterioration on the income side.
Unemployment up, inflation down
The unemployment rate ticked up slightly to 4.3% in June, drifting slightly above the RBA’s projections.
This was not unexpected. The Roy Morgan measure, which has a looser definition of unemployment has been trending higher for some time.
At the same time, inflation came in softer than expected last week. RBA, you’re clear for take-off.
The Death of Partying
I was massively relieved to hear that there’s been a huge decline in partying across the world in recent years (I thought I wasn’t getting invited to parties anymore because of my risqué impressions.)
Between 2003 and 2024, the amount of time that Americans spent attending or hosting a social event declined by 50 percent. Almost every age group cut their party time in half in the last two decades. For young people, the decline was even worse. Last year, Americans aged 15-to-24 spent 70 percent less time attending or hosting parties than they did in 20031.
I miss going to parties.
And that’s (pretty much) all you need to know. Have a great week.
JG.