The Best and Worst States to Start a Small Business
A strong local housing market is very closely tied to the strength of the local economy and small businesses are one of the of the biggest driving forces in many local economies.
|In a recent study, WalletHub compared the 50 states across 26 metrics for startup success, assigning each state a number in each category, then computing which states are the most business-friendly overall.|
The results are hardly surprising: High-tax states in the northeast offer some of the worst conditions for businesses, while low-tax states in the Sun Belt have some of the best conditions.
States that offer the right conditions for success, such as access to cash, skilled workers, affordable office space and other factors, can be critical in helping a business thrive.
What Happened to Rates Last Week?
|Mortgage backed securities (FNMA 3.500 MBS) lost -20 basis points (BPS) from last Friday’s close which caused fixed mortgage rates to move slightly higher but remained near their lowest levels of the year.|
Overview: We saw an uptick in inflation (CPI and PPI), and that coupled with the prior week’s strong jobs data has bond traders pulling back their hedges for a 50 BPS rate cut from the Fed this month down to a 25BPS. This pulled a little premium out of bond yields.
Inflation Nation: The headline June Core CPI (ex food and energy) YOY broke back above 2.0% and was a little higher than expectations (2.1% vs est of 2.0%). CPI YOY hit 1.6% vs est of 1.6%. (ex food and energy) YOY broke back above 2.0% and was a little higher than expectations (2.1% vs est of 2.0%). CPI YOY hit 1.6% vs est of 1.6%. The headline June Core PPI (ex food and energy) YOY was higher than expected (2.3% vs est of 2.2%) and the PPI YOY was also higher than expected (1.7% vs est of 1.6%). These readings do not get the same weight as the CPI data does but these do show upward pricing pressure.
The Talking Fed: Fed Chair Jerome Powell gave his semi-annual monetary policy report to the House Financial Services Committee and the Senate Banking Committee. Here is the statement that he read to them: You can read them here.
Here are a few bullet points from his statement:
The Minutes from the last FOMC meeting certainly pointed to a rate cut at the July meeting. You can read the official Minutes here. While once again the markets are focusing on the most dovish of notes, but there was actually a mixed bag.
What to Watch Out For This Week:
It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon.