The surge in house prices during the pandemic was entirely consistent with the plunge in mortgage interest rates. The post-pandemic surge in mortgage rates was also consistent with the initial downtick in house prices. The turn in house prices since the beginning of 2023 represents a break in the prior relationship, but it is consistent with the broader re-accleration in U.S. growth and risk asset prices over that period. Most of these data are old enough that they do not even reflect the impact of the recent drop in ~1 percentage point drop mortgage rates since October. Should rates stay at current levels, housing activity should ramp up even more.
- Date Posted:
- January 19, 2024
Taiwanese chip maker TSMC said it expected to delay production at the second of two semiconductor plants it is building in Arizona, the latest setback for a $40 billion project at the core of Washington’s effort to rebuild U.S. chip manufacturing. The second factory had been scheduled to begin production of 3-nanometer chips in 2026. TSMC Chairman Mark Liu revised that schedule saying that while construction continues, TSMC now is looking at 2027 or 2028 as the timeline for volume production. He also said the specific chip type wasn’t yet determined. Customer demand and government incentives will play a role in deciding whether the second factory makes 3-nanometer chips, he said. The nanometer figure reflects the size of transistors that can be packed onto a chip, with a lower figure designating more advanced technology. Chips labeled 3-nanometer would be among the most advanced manufactured today.