Economics Update

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CRE is not a pretty picture
H/t Calculated Risk

Not a good day for real estate.

We have an increase in the rate of mortgage delinquencies, as well as decrease in delinquent mortgages becoming current.

Additionally, in the world of non-residential real estate, office vacancy rates have hit a 17 year high. (See graph pr0n)


Outside of real estate, the Institute for Supply Management's (ISM) non manufacturing index fell in June, though the number is still above 50, it's 53.8 down from May's 55.4, so it is showing slower expansion, not contraction.

On the brighter side, the bankruptcy filing rate in June fell from May's level.

Well, sort of anyway. You see, June actually had about the same number of filings, but because June had 22 business days, and May, because of where weekends fell and the Memorial Day holiday, only had 20 business days, the rate for filing days was down by 10%.

I call bullsh%$ on that one.

People don't file on a per business day basis, they do so over a period of time that is largely unaffected by holidays, and June has 1 fewer days that May.