US housing is broken. Even a 0% mortgage won’t save it. (August 2025 - Newsletter)
“Education is the passport to the future, for tomorrow belongs to those who prepare for it today." — Malcolm X
With a new school year on the horizon, it's time to prep the backpacks, sharpen the pencils, and embrace a fresh start. But where is the economy heading? We’ll break it down today.
TODAY'S TOPICS
Home sales are slowing across the U.S.
Americans are cutting their everyday spending.
EU’s new trade deal with the U.S. disappoints investors.
Korean students hike their way to a scholarship (literally).
QUIZ
1. What is the clinical term for a fear of going to school?
Schoolitis
Homeworkphobia
Didaskaleinophobia
2. Roughly what percentage of kids actually enjoy school?
Less than 25%
Around 33%
About 66%
REAL ESTATE
Current mortgage rates
30-year – 6.58%
15-year – 5.93%
Real estate news
Even a 0% mortgage wouldn’t make homes affordable in some U.S. cities. Zillow says mortgage rates would need to drop to around 4.33% for the average home to be affordable. But in cities like New York, Los Angeles, Miami, San Francisco, San Diego, and San Jose, even 0% interest isn’t enough. Experts say it’s the sky-high prices, not the rates, that are the real issue. Learn more
Home sales are slowing across the U.S. due to low inventory and high prices. Homes are sitting on the market longer, with some sellers reducing prices by tens of thousands of dollars. Yet, experts say the cooling market may be healthy after years of growing prices. Learn more
U.S. ECONOMY - Desde AQUI YA NO TOMO CAMBIOS
Inflation
Current US inflation rate: 2.7%
Unemployment
Current US unemployment rate: 4.2%
FED rate
Fed funds interest rate: 4.5%
U.S. economy news
Americans are pulling back on spending. American shoppers are sticking to basics, buying in bulk, or choosing cheaper options. Consumption trends are consistently decelerating, as even everyday items like shampoo and diapers take a hit. Learn more
U.S. farmers spent almost $29 million lobbying in early 2025, as stricter immigration rules make it harder to find workers. Many farms rely on undocumented labor, but with crackdowns rising, they’re turning to the expensive H-2A guest worker program. Learn more
GLOBAL OUTLOOK
UK inflation hit 3.6% in June, which is higher than in the U.S. or the eurozone. Despite easing domestic pressures since the pandemic, wage growth remains too strong to bring inflation down to the 2% target. Learn more
Investor confidence in the eurozone dropped in August. This signals early disappointment with the EU’s new trade deal with the U.S. and its potential impact. 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) – 485.87%
GE Vernova Inc. (GEV)– 271.64%
Tapestry Inc. (TPR) – 166.53%
Vistra Corp. (VST) – 166.35%
Axon Enterprise Inc. (AXON) – 149.67%
Stock market news
84 AI-related stocks account for 35% of S&P 500 earnings and half its market value. Despite a sharp rally, this is no bubble according to Citibank. In a new strategy note, the bank advises investors to stick with AI-enabler companies for now. Learn more
COFFEE BREAK
Fun news
Hike your way to a scholarship. At Seoul National University, students are lacing up their hiking boots, not for fun, but for a scholarship that rewards climbing. The donor behind this scholarship says the goal is to promote a healthier lifestyle among young people. Learn more
Investor of the month
Michael Burry
Michael Burry is an American investor and hedge fund manager, famous for predicting the 2008 housing market crash. He founded Scion Capital in 2000 and became known for his deep research and value-based approach. Between 2005 and 2007, he used credit default swaps to bet against the U.S. housing market, earning his investors around $700 million – a story later told in The Big Short. Learn more
QUIZ ANSWERS
Didaskaleinophobia
About 66%
CONTENT YOU CAN’T MISS
This month’s recommended book
by Michael Lewis
It's a fascinating story of the 2008 financial crisis and the few outsiders who predicted it. With sharp storytelling and real-life characters, it shows how reckless lending and blind faith in Wall Street nearly crashed the economy.
Why saving money is slowing you down
Could saving actually make you poorer? The numbers might shock you.
$175,000 a month in rental income from 1 house
On paper, this luxury rental looks like a goldmine. But here’s what the math really says.
