Qualifying for a home loan may seem next to impossible between high mortgage rates and dizzying property prices. However, a new policy from the Department of Housing and Urban Development (HUD) through the Federal Housing Administration (FHA) now allows the inclusion of rental income from accessory dwelling units (ADU) in the underwriting process, hopefully helping some borrowers to get the extra boost...
The September Consumer Price Index (CPI) released by the Labor Department proved, once again, that the Federal Reserve Bank’s battle against inflation would be anything but smooth sailing. Prices for goods and services remained higher than expected, rising by 3.7% compared to the previous year, similar to last month’s increase. On a monthly basis, prices increased 0.4% following a 0.6% rise in August...
The U.S. job market remained stronger than expected in August according to the latest Job Openings and Labor Turnover Survey (JOLTS) released by the Bureau of Labor Statistics. Job openings unexpectedly increased after three consecutive months of falling numbers, particularly in white-collar sectors, including professional and business services, finance and insurance, and education. There were 9.6 million...
Housing prices were back to flirting with historic highs in July, according to the latest reports. The S&P CoreLogic Case-Shiller U.S. National Home Price Index shows that U.S. home prices increased 0.9% since June 2023, rising for the sixth consecutive month and effectively canceling the 5.0% price decline we observed from June 2022 through January 2023. In year-over-year comparisons, property prices...
As widely expected, Federal Reserve Bank officials elected to keep interest rates steady—for now—following the September Federal Reserve Open Market Committee (FOMC) meeting as it navigates a cooling job market and decreasing inflation. “We decided to maintain the target rate while continuing to reduce our security holdings. We have not decided at this point what the appropriate rate is,” said...
Prices on goods and services increased more than experts predicted in August, according to the latest Consumer Price Index (CPI) report released by the US Department of Labor. Inflation posted its most significant monthly increase since the beginning of the year, climbing by a seasonally adjusted 0.6% since July and was up 3.7% from a year ago. The two numbers were up 0.2% and 3.2% in July. The...
As the Federal Reserve Bank is poised to meet at the Federal Open Market Committee (FOMC) later this month to decide whether or not to increase interest rates further, the indicators they base their decision on keep rolling in. FOMC is trying to slow the economy to reduce the inflation rate and sometimes getting bad news is good news. The Personal Consumption Expenditures Price Index (PCE) released by...
The lack of “for sale” signs has been an ongoing concern for house hunters since the COVID-19 pandemic, and despite a slight decline in demand, the supply side has not improved. The National Association of Realtors data shows that the 1.1 million homes for sale marked the smallest total inventory for any July going all the way back to 1999 despite a slight 3.7% increase from the previous month. At...
Being able to afford a home continues to be a challenge for most American households. According to the latest Housing Affordability Index released by the National Association of Realtors (NAR), housing affordability declined nationwide in June, both on a monthly and yearly basis. The monthly mortgage payment rose 6.6% (a $135 increase compared to May), while the median price of single-family homes...
As indicators roll in, more and more signs seem to be pointing towards the fact that the Federal Reserve Bank seems to have managed an elusive “soft landing” in its campaign against inflation–which reached a 40-year high in June 2022. The latest Consumer Price Index (CPI) released by the Bureau of Labor and Statistics indicates that prices for goods and services rose by 3.2% in July compared to...