Inside the bubble and the housing market

Hi, this is Matt Turner, the editor at Insider. Welcome back to Insider Weekly, a summary of some of our top stories.


On the agenda today:

Dont miss: Our first digital cover, with Serena Williams. The tennis star talked about her mother’s guilt, her venture capital company and the possibility of a “King Richard” sequel. See the full profile here.

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Wall Street is fueling the housing market

Shed in the middle of nowhere with a sign for sale.


Benjamin Rondel / Getty Images


If you or someone you know has been trying to buy a home for the past six months, you have probably heard the horror stories.

Personally, I have heard from friends in Chicago, Los Angeles, New York and other cities in the US. Homes that look like they’s in their budget end up costing 30% to 40% more. Cash buyers are gaining ground. Many houses sell invisible.

To make matters worse, mortgage rates have skyrocketed, raising monthly costs, and deep-pocket investors, many of whom are backed by billions from Wall Street, are adding to the competition. According to a recent analysis, investors bought one-third of all U.S. homes for sale in the first quarter, the highest in at least a decade.

Meanwhile, start-ups are mushrooming ready to help those who already have a home gain access to part of their equity.

So it’s no surprise that the number of people looking for information on a housing bubble has also skyrocketed. Read about a Q&A with real estate journalist James Rodriguez analyzing what’s going on.

What’s one of the biggest things we’re seeing in the housing market right now?

The biggest story right now is mortgage rates, which have risen in the last three months. faster pace in almost 28 years. At the beginning of the pandemic, low mortgage rates encouraged buying activity despite rising house prices. But this week, the average interest rate on a 30-year loan hit 5% for the first time since 2011 – meaning optimistic buyers are looking at more expensive monthly payments, in addition to a lack of listings and stiff competition for homes.

One of your recent hits focused on one who sold a stake in her home on Wall Street. What about this trend?

Home values ​​have skyrocketed in the past two years, meaning U.S. homeowners are living on trillions of dollars of equity that is basically trapped, unless they sell their home, refinance or take a equity credit line.

But these options do not work for everyone, and some companies offer an alternative called “home equity investing”, in which they give homeowners cash in exchange for a percentage of their future home valuation. These companies are backed by billions of dollars from Wall Street companies that are willing to increase their bets on the US housing market.

The number of people who google “Is there a housing bubble?” has skyrocketed. What would you tell them?

Many of the concerns about a housing bubble today stem from the Fed raising interest rates, which raises the chances


recession

. The good news, however, is that the experts we spoke to largely agree that the fundamentals of the housing market today are very different from those before the financial crisis – lending standards have become stricter and there is much lower supply than demand, which shows that the market is on a more stable footing than in 2008.

Read more here:

Read also:

From internship to Andreessen Horowitz partner in one year

Carra Wu is a partner at Andreessen Horowitz.

Carra Wu is a partner at Andreessen Horowitz.

Alex Zhang


In 2021 – after leaving Harvard (twice) and working for Apple and Microsoft – 23-year-old Carra Wu completed a coveted internship at Andreessen Horowitz, the Silicon Valley VC company that has penetrated deeper into the encryption market than anyone opponent.

Now, a year later, Wu is the company’s newest checkmaster and a rising star in the world of cryptocurrencies – and it all started with a cold six-sentence email.

Read the full story here:

The Gen Z is even more lonely than previous generations

Illustration of a gen z woman sitting at a desk with a laptop open, looking longingly out of a small window in front of her


Marianne Ayala / Insider


Generation Z is the most successful generation: They have more years of formal education, lower school dropout rates, are more likely to avoid drugs, and have lower rates of teenage pregnancy. But they are also incredibly lonely.

A new study has found that Gen Zers eat fewer meals with their family, have less free time and feel more pressured by their parents than previous generations, creating a pervasive sense of loneliness – which has been exacerbated by their parents.

Read the full story here:

Many models say that Tyra Banks’ “ANTM” left them injured

An illustration of Tyra Banks getting ready to cut the hair of a barbie doll


Michelle Rohn for Insider


“America’s Next Top Model”, a hybrid of modeling-camping-boot-competition, was a golden reality TV show, designed as a golden ticket for models who would not have had the opportunity to enter the fashion industry otherwise.

But as the seasons went by, photography, transformations, and challenges became more and more irrational, and many models told Insider that this came at the cost of their mental – and physical – health.

Read the full story here:

More of this week’s top read:

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Edited by Matt Turner. Edited by: Jordan Parker Erb and Lisa Ryan. Sign up for more Insider newsletters here.

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