Home prices have plunged during the second half of 2022 with demand for residential real estate cooling off in a number of states and cities across the U.S.
Newsfeed: U.S. home prices could fall as much as 20% next year Read More »
The U.S. housing market is absolutely imploding, but nobody should be surprised. In fact, we were warned way ahead of time that this would happen. When the Federal Reserve told us that they would be aggressively raising interest rates, we all knew what this would do to the housing bubble. It was obvious that home prices would fall, home sales would plummet and home builders would get absolutely crushed. Sadly, that is precisely what we are witnessing. But instead of reversing course after witnessing all the damage that they have caused, Fed officials are insisting that even more rate hikes are necessary. So as bad as things are right now, the truth is that they are going to get even worse in the months ahead.
Rising costs have chipped away at most Americans’ standard of living. As inflation pressures continue, two-thirds of working adults said they are worse off financially than they were a year ago, according to a recent report by Salary Finance.
A key component propping up consumer prices is cooling, but it’s not yet reflected in the government’s inflation measure, according to experts.
Newsfeed: Key inflation gauge doesn’t fully capture cooling rent growth Read More »
Federal Reserve policymakers suggested that they’re prepared to raise interest rates higher than previously planned, though not necessarily at a faster pace, to defeat persistent high inflation.
Newsfeed: Fed Officials Look at Higher Peak for Rates as Inflation Endures Read More »
While the market’s volatility this week has been focused on UK pension funds and budgets and systemic risk, this morning’s US CPI print will likely determine the next leg from here with expectations for an acceleration in core inflation and small slowdown in headline growth of consumer prices.
Newsfeed: US Core CPI Surges To 40 Year Highs; Food & Shelter Costs Soar Read More »
The federal government’s Bureau of Labor Statistics released new price inflation data today, and according to the report, September was yet another month of soaring inflation.
In the earliest phases of the pandemic, many of the nation’s large cities saw sharp rent declines as a subset of renters with newly remote working arrangements moved away from expensive downtown areas that had temporarily lost their vibrancy, in search of more space in the surrounding suburbs.
Newsfeed: Rent Inflation Hits Outer-Ring Suburbs the Most, Core Cities the Least Read More »
It’s a double whammy for would-be homebuyers. Not only are interest rates soaring, it’s getting harder to qualify for a loan. The average rate on the popular 30-year fixed mortgage climbed over 7% at the end of last week, according to Mortgage News Daily, and is expected to hit around 7.125% on Tuesday. It’s been over 7% for several days.
In a market environment where the only hope left is a central bank pivot away from rate hikes and back to QE, any slight detour by any central bank in the west is now put under a microscope with excitement as if stocks are about to be saved. The Bank of England’s minimal intervention in long term gilt purchases to stave off a collapse in the UK pension system recently had investors buzzing with dreams that this was the beginning of a pivot by other central banks back to stimulus. This is not the case.
Newsfeed: No Pivot? BOE Says Rate Hikes Will Continue – Inflation Must Be Stopped Read More »