As broadly expected, the Federal Reserve Bank moved forward with a 25 bps interest rate increase at its July meeting after a pause in its hiking policy last month, bringing the target range for the Fed’s benchmark Federal Funds rate to 5.25%-5.50%, its highest level in 22 years. Despite the Fed’s 16-month campaign to curb inflation, the US economy is proving resilient. While inflation has...
Buying a house may seem like an unachievable goal to many prospective buyers. Between mortgage rates flirting with 7% and sky-high property prices, purchasing a house requires significant sacrifices, particularly for first-time homebuyers who must also contend with increasing rent prices taking a toll on their ability to save for a down payment. However, even current property owners who may have purchased...
Inflation cooled down to its lowest levels in more than two years in June, according to the latest Consumer Price Index (CPI) report released by the Bureau of Labor and Statistics. Prices for goods and services rose 3.0% from the year prior and climbed 0.2% from May, less than economists expected. The so-called core CPI, which excludes the more volatile prices of food and energy, rose 4.8% in June from a...
As any would-be homebuyer can tell you, purchasing a home does not come cheap these days. Between mortgage rates standing twice as high as they were in previous years and property prices remaining stubbornly elevated in most of the country due to the ongoing lack of inventory, mortgage payments for new buyers are at a record high. According to the Mortgage Bankers Association's (MBA) Purchase...
If you have been waiting in the starting blocks hoping for a break in home prices, you may need to wait a while longer. According to the latest indicators, home prices continued their slow climb back in April. Data from the S&P CoreLogic Case-Shiller Indices indicate that housing prices increased on a month-over-month basis in all 20 major metro markets for the third consecutive month. After seasonal...
Despite mortgage rates doubling in the past year, taking a significant toll on the ranks of would-be house hunters, home prices have remained stubbornly high in most of the country. The reason? Even with the decreased demand, there are still not enough houses on the market to satisfy the needs of Americans. Bloomberg reported that active listings fell 7.1% on a seasonally adjusted basis in May and were...
In March 2022, the Federal Reserve Bank initiated an aggressive interest rate hiking policy as its primary means to fight back against inflation that was climbing to levels unseen in decades. Over a year later, the Fed has proceeded with ten successive rate increases of up to 75 bps, bringing the Fed’s benchmark rate to a target range of 5-5.25%, the highest in nearly 16 years. Inflation is showing...
If you were one of the hopeful would-be homebuyers waiting for home prices to decline in 2023, the latest S&P CoreLogic Case-Shiller Home Price Index may be a rude awakening. The data indicates that home prices rose 1.3% in March compared with February and increased 0.7% in March 2023 compared to March 2022. The Home Price Index from the Federal Housing Finance Agency also showed home...
As property values shot up at an unsustainable pace in the wake of the COVID-19 pandemic, many real estate experts predicted the eventual demise of the real estate market. However, three years later, home prices are still high despite the aggressive interest rate hiking policy initiated by the Federal Reserve Bank. The median existing-home sales price finally started to decline in February 2023 in...
Inflation may be cooling down, but housing costs remain stubbornly high despite the aggressive interest rate hiking policy initiated by the Federal Reserve Bank. Home prices nationwide are still significantly higher than before the pandemic, particularly in once-affordable areas. It is especially challenging for first-time home buyers who must navigate a combination of high property prices, high interest...