As mortgage rates go up and the housing market softens, more people are canceling home purchases. In August, over 15 percent of home purchase agreements were canceled—the second month in a row, according to real estate brokerage Redfin. Compared to a year ago, cancellations are up 3 percent.
Newsfeed: Home Purchase Cancellations Above 15 Percent: Report Read More »
The unraveling of the bond market will continue to batter stocks over the coming months, according to a Friday note from Bank of America. Bonds are experiencing their worst decline since 1949 as interest rates soar amid a global central bank campaign to fight inflation. The US Aggregate Bond ETF is down 15% year-to-date, while global bonds are down even more.
With central banks worldwide aggressively ratcheting up interest rates in the face of stubbornly high inflation, prices are tumbling as traders race to catch up. And with that has come a grim parade of superlatives on how bad it has become.
Newsfeed: The Great Bond Bubble Is ‘Poof, Gone’ in Worst Year Since 1949 Read More »
Record-high housing prices in the US could collapse by up to 20 percent over the next year if a recession sparked by Joe Biden’s inflation takes hold, a top Wall Street economist has warned.
Real estate investors have largely done well for the past few years. But with higher interest rates, things could be about to change. The U.S. Federal Reserve raised its benchmark interest rates by 0.75 basis points on Wednesday, marking the third such hike in a row.
Mortgage rates jumped more than a quarter point this week and remain at the highest level in 14 years, offering no relief to sidelined homebuyers.
Newsfeed: Mortgage rates jump again, remain above 6% Read More »
Investors globally are wondering – after CPI sent the ‘peak inflation’ narrative to the bottom of the ocean and Powell’s Jackson Hole speech (and this FOMC statement and press conference) crushed the ‘Fed Pivot’ narrative – what other potential indicators/signals (aside from a multi-month slowdown in inflation of course) could prompt Powell and his pals to back off their uber-hawkishness?
Newsfeed: Here Are Some Things The Fed Will Break If It ‘Contains Inflation’ Read More »
Today we get our first glimpse of the carnage in the housing market from August. With mortgage rates having soared and homebuilder sentiment tumbling (and permits plunging), it should be no surprise that existing home sales were expected to fall for the 7th straight month (-2.3% MoM vs -5.9% MoM in July).
Newsfeed: US Existing Home Sales Sink For 7th Straight Month Read More »
Tl;dr: For the 3rd meeting in a row, The Fed hiked 75bps as expected but signaled a much more hawkish than expected future trajectory of rates (higher for longer).
The average interest rate on the most popular U.S. home loan climbed to its highest level since October 2008, Mortgage Bankers Association (MBA) data showed on Wednesday.
Newsfeed: U.S. mortgage interest rates reach 6.25%, highest level since October 2008 Read More »