News & Insights
Welcome to the FIA News & Insights, a one-stop resource that includes insights from senior investment professionals on timely market events, their views on the economy and their respective markets. Find updates on the latest media information on Frost Investment Advisors, LLC and the most recent reprints, as well as, archival information for your reference.
The Auto Market Wrecked, Bond Market Moving Again, and the US Gets New Investments in Manufacturing
Auto Manufacturing Still Snarled
More than three years after the initial pandemic lockdowns, the automotive market is still out of balance. Sales are down from pre-pandemic levels, production still lags (only 149,000 vehicles were produced domestically in June, just half of the level prior to 2020) and auto inventories remain extremely low. New-vehicle prices show some signs of plateauing but at extremely elevated levels: The average new price is more than $47,000, 30% higher than just a few years ago. High interest rates are also taking a toll on buyers. More than 17% of all financed vehicles come with a monthly payment of more than $1,000. Most borrowers are locked into loans of longer than five years at rates between 8.5% and 9.6%.
Subscribe to our News & Insights
Get the latest posts straight to your inbox