Historic drop for first-time homebuyers (July 2025 - Newsletter)
“America is a tune. It must be sung together.” — Gerald Stanley Lee
A week after Independence Day, it’s a good moment to reflect on who we are and the freedom we’ve built. While the U.S. is facing economic shifts, here’s a look at the most important ones.
TODAY'S TOPICS
First-time homebuying fell to 1.1M — half the typical rate.
U.S. firms use old trade zone tricks to save on tariffs.
Tesla short sellers are set to earn about $1.4 billion.
Horse-flies may have sped up the Declaration’s signing.
QUIZ
1. The melody of the U.S. national anthem comes from…
A British drinking song
A French military march
A classical Italian opera
2. Which U.S. President was born on the 4th of July?
Calvin Coolidge
George W. Bush
Ronald Reagan
REAL ESTATE
Current mortgage rates
30-year – 6.70%
15-year – 5.99%
Real estate news
Fewer Americans are buying their first home — only 1.1 million did in 2024, half the usual number. With high prices and mortgage rates, homeownership is out of reach for many. Instead, more people are renting, pushing the renter population to a record 46 million. Learn more
New data shows U.S. home prices are just above China — and far below Canada. The average home in the U.S. costs around $368K, placing it well above Mexico ($92.5K), slightly above China in price per square meter, and significantly below Canada ($505K). Learn more
U.S. ECONOMY
Inflation
Current US inflation rate: 2.4%
Unemployment
Current US unemployment rate: 4.1%
FED rate
Fed funds interest rate: 4.33%
U.S. economy news
More U.S. companies are using tariff-free trade zones to cut costs. These zones, created during the Great Depression, allow goods to be stored duty-free and help businesses delay or avoid tariffs. Today, 374 zones operate across all 50 states and Puerto Rico. Learn more
The US has threatened a 10% tariff on countries aligning with BRICS, calling their stance “anti-American.” The move comes as BRICS leaders meet in Rio and criticize U.S. trade policies. Tariffs will take effect August 1 for countries without a deal, sparking market concerns and a 400-point drop in the Dow. Learn more
GLOBAL OUTLOOK
Investor confidence in the eurozone hit a 3-year high. The boost came as the region’s recovery spread across more countries, especially in Germany. Learn more
China plans to double a program that lets local investors buy foreign bonds. This would make it easier to invest overseas and is part of China’s plan to grow its economy and make the yuan more widely used around the world. Learn more
STOCK EXCHANGE
Stocks recommended by experts
Top 5 best-performing S&P 500 stocks of 2025 (year-to-date gains):
Palantir Technologies Inc. (PLTR) – 413.91%
GE Vernova Inc. (GEV)– 201.71%
Axon Enterprise Inc. (AXON) – 167.80%
Howmet Aerospace Inc. (HWM) – 128.09%
DoorDash Inc. (DASH) – 120.08%
Stock market news
Tesla short sellers are set to earn about $1.4 billion after the company’s stock dropped 7.5%. The slump followed Elon Musk’s announcement of a new political party, raising concerns about his focus on Tesla. Learn more
COFFEE BREAK
Interesting facts about the 4th of July
Horse flies may have sped up the signing. During the hot summer in Philadelphia, delegates were constantly bitten during meetings. Legend says the irritation pushed them to finalize the Declaration faster. Learn more
3 U.S. presidents died on Independence Day. Thomas Jefferson and John Adams both passed away on July 4, 1826 – 50 years after the Declaration was signed. James Monroe died five years later, also on July 4. Learn more
Question of the Month
I have a house that is fully paid off but it's very outdated. Should I fix it up or just sell it? Sincerely, Berenice B.
Hi Berenice. The answer will depend a lot on whether that house is your primary residence or an investment property.
If it's your primary residence, would you be willing to sell your home and move somewhere else? If you're not willing to move, it's best to invest in renovations so you can save on homeowners insurance and other bills (like electricity). The good thing about renovations is that they also increase the value of your home.
Now, if you're willing to move, selling your house may be the best solution, since it saves you the trouble of having to renovate and oversee the renovation - which can be financially and emotionally draining. Additionally, if you buy a property in better condition, your homeowners insurance may be cheaper. It's worth noting that properties in better condition (or newer) have a higher entry point, and when combined with higher interest rates, this would create a high mortgage payment. So you need to make sure the new mortgage payment is financially manageable for you.
This analogy also applies to an investment property, but in this case, you need to make sure you implement a 1031 exchange to save on capital gains taxes, and you need to make sure the rental income covers your new mortgage note and provides you with cash flow.
Investor of the month
Cliff Sosin
Cliff Sosin started his investment fund, CAS Investment Partners, in 2012 with $5 million. Now, it's grown to $1.7 billion (as of 2024). One of his biggest investments is Carvana, which used to be worth over $60 billion in 2021, then lost 99% of its value, but didn’t go bankrupt. Now, that same company is recovering and is almost worth $50 billion again. Learn more
QUIZ ANSWERS
A British drinking song
Calvin Coolidge
CONTENT YOU CAN’T MISS
This month’s recommended book
Capital in the Twenty-First Century
by Thomas Piketty
Thomas Piketty studies wealth and inequality. He finds that although growth has kept the economy stable, the rich keep getting richer, faster than the economy grows. But with smart policies, he says, inequality can be reduced.
The worst properties to buy in 2025
Before you sign that purchase agreement, let's first make sure you are not buying a property you might regret buying.
Where to invest your money in times of crisis
What do smart investors know about gold that others don’t? Watch this video to find out.
