The US is in the middle of the fastest Fed-driven housing slowdown in history. Yesterday, Apollo Global Management released a new report titled “US Housing Outlook: Housing recovery has started.” In it, they share several charts that show leading indicators of a rebound in the housing market. Highlights from the report: 1/ Home buyers and…
Read moreThe housing market sees signs of life as 30-year rates fall
Tired of your annoying roommate? Looking for a heat check on the economy? Best be paying attention to 30-year mortgage rates and housing data. Why? The housing market makes up an outsized 15-18% of the US GDP. And a 1% difference in mortgage rates can mean Uber Eats or pick up an extra $137 monthly…
Read moreWill high mortgage rates tank the housing market?
Morgan Stanley’s US housing strategist James Egan forecasted a mere 3% home price decline in 2023. Is he missing an extra zero? The Fed benchmark rates have risen in 41 years — taking 30-year mortgage rates up with them. Everywhere you look, there are headlines like “US home sales drop for 7th straight month, house…
Read moreThe battle against inflation gets another win as August rent prices fall
In the August inflation report, there were a few major categories that kept inflation stubbornly high: Food and housing costs. Housing costs — which include rent — are a large portion of the inflation index (~1/3) and are a major reason why inflation is still so high. So it’s a good thing that rent prices…
Read moreThe housing market takes a sharp turn
What can’t the Simpsons predict? In Fed Chair Jerome Powell’s views, the housing market will likely experience a “correction” — seeing it as a “good thing.” But economists believe that the housing market is already in a “deep recession.” Remember the good days? When interest rates were near zero — everyone rushed to purchase or…
Read moreAmerica’s housing shortage is getting better, and also worse
The U.S. has been dealing with a housing shortage that drove up home and rental prices. But recent data shows rising rates are impacting home sales — a sign the housing market is cooling. Per Realtor’s July housing report, the national inventory of active listings rose 30.7% compared to the previous year — the highest…
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