Buying A House In 2025?

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  • The housing market may become slightly more affordable in 2025.

  • Economists forecast that mortgages may fall, but not by much. However, this could be enough for more homeowners to list their homes for sale.

  • More homes for sale means more options for buyers and less competition for each listing. That could result in slower home price growth and even cuts to asking prices in some cases.

  • Buyers may get more breathing room in 2025 as mortgage rates fall slightly, more homes are listed for sale, and prices grow less swiftly than in years past.

Homelessness in the US grew by 18% year on year as of January 2024, reaching its highest point since the federal government began counting in 2007. The Department of Housing and Urban Development said in a report released Friday that the spike in people without housing could be traced to rising inflation, natural disasters, an influx of immigration, and the end of Covid-era government programs like the Child Tax Credit.

A lack of affordable housing is linked to the fact that there are simply fewer homes for sale and apartments available to rent. That’s partly because of rising mortgage rates, which makes it less appealing for current homeowners to sell and harder for new buyers to enter the market. The 30-year fixed mortgage rate has been sitting above 6% since 2022, a level it hadn't reached since 2008. Mortgage rates tend to track the 10-year US Treasury yield, which recently hit a seven-month high as traders ratchet down expectations for how much more easing the Federal Reserve will deliver following a string of hotter-than-expected CPI inflation reports and the potential that President-elect Trump's fiscal and trade policies could add to price pressures.

The S&P 500 fell 1.1% while the Nasdaq 100 gave back 1.4% and Russell 2000 was down 1.6% on Friday.

The S&P 500 sectors home to the Magnificent 7 — consumer discretionary, tech, and communication services — fared the worst. Every member of that group was down on the day. Meanwhile, Super Micro Computer SMCI $31.85 (-5.19%), Tesla TSLA $431.94 (-4.94%), Palantir Technologies PLTR $78.79 (-3.66%), and Vistra Corp VST $139.66 (-3.01%) were at the bottom of the S&P 500’s leaderboard.

Netflix NFLX $907.96 (-1.79%) fell (despite a riveting Beyoncé NFL halftime show on Christmas Day) amid less-than-stellar reviews of the second season of “Squid Game,” which was released on Thursday.

Quantum-computing upstart Rigetti Computing RGTI $16.52 (10.49%) was one of the top 10 most heavily traded securities in the US, and the only one of that group that rose on Friday. 

Quantum-Si QSI $3.58 (66.74%) — which, despite the name, is not a quantum-computing company — soared.

Ten-year Treasury yields ended the day at the highest closing level since early May.

What Else Are We Biting

  • Nvidia dominated 2024 big-time. Next year?

  • Hertz is asking EV renters (Tesla or Polestar) if they want to keep it, permanently.

  • Why tech giants such as Microsoft, Amazon, Google and Meta are betting big on nuclear power.

  • Costco egg recall may cause 'serious' illness or death, FDA says as it raises risk level.

Biting Fact Of The Day

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