DeepSummary
The episode begins by discussing the recent gloomy news in the housing market, with new home sales falling 4.7%, existing home sales dropping 2%, and homebuilder confidence declining in May. The main culprit appears to be high mortgage rates, which have risen above 7% according to Freddie Mac. The episode then explores the challenges faced by the housing market, with buyers struggling to afford high monthly payments and sellers reluctant to give up their low mortgage rates.
The episode also covers Target's decision to cut prices on thousands of items to lure customers back, as the company experienced a decline in store traffic and purchases in the first quarter. This is seen as part of a broader trend of price competition making a comeback, with Walmart also emphasizing its low prices as a competitive advantage.
Other topics discussed include DuPont's plan to split into three separate publicly traded companies focused on water, electronics, and chemicals, the financial challenges faced by Olympic and Paralympic athletes, and a profile of a custom cowboy boot maker in Virginia who finds fulfillment in his work.
Key Episodes Takeaways
- The housing market is struggling due to high mortgage rates above 7%, making it difficult for buyers to afford monthly payments and discouraging sellers from giving up their low rates.
- Price competition is making a comeback, with companies like Target and Walmart cutting prices on various items to attract customers.
- DuPont, a company dating back to 1802, plans to split into three separate publicly traded firms focused on water, electronics, and chemicals.
- Olympic and Paralympic athletes face significant financial challenges, with many having to work additional jobs to cover the costs of training and competing.
- The episode features a profile of a custom cowboy boot maker in Virginia who finds fulfillment in his work despite the high labor costs involved.
- The expiration of COVID-era SNAP benefits has caused hardship for millions of Americans, with food pantries experiencing increased demand.
- Core goods prices have been declining for most of the past year, contributing to the resurgence of price competition among retailers.
- The episode touches on broader economic issues such as inflation, interest rates, and the federal government's debt and spending.
Top Episodes Quotes
- “We've made price cuts on 1500 frequently shopped items in many markets, and we're planning additional price cuts on thousand more items this summer.“ by Brian Cornell
- “Core goods prices have been falling ten of the past eleven months.“ by Alan Dettmeister
- “I enjoy the labor so much. I mean, I feel guilty for charging for that.“ by Steve Christo
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Episode Information
Marketplace
Marketplace
5/23/24
This week, we got some gloomy news on the housing market: In April, new homes sales fell 4.7% and existing home sales dropped about 2% from the month before, and in May, homebuilder confidence took a dive. The most likely culprit? High mortgage rates. Also in this episode: Why DuPont is splitting its company into three, what Olympic and Paralympic athletes are doing to raise funds for Paris, and how business is going for a maker of custom cowboy boots in Virginia.
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