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☆ Home Prices Fell in October for Fourth Straight Month
▼ + stars: | 2022-12-27 | by ( Will Parker | ) www.wsj.com time to read: 1 min

Home prices declined in October from the previous month as higher mortgage interest rates continued to weigh on home-buying demand. The S&P CoreLogic Case-Shiller National Home Price Index, which measures average home prices in major metropolitan areas across the nation, fell 0.5% in October compared with September, the fourth straight month-over-month decline.

☆ Double-digit U.S. home price growth streak skids to an end
▼ + stars: | 2022-12-27 | by ( Dan Burns | ) www.reuters.com time to read: +4 min

The S&P CoreLogic Case Shiller national home price index increased by 9.2% in October, down from 10.7% in September and notching the first single-digit gain since November 2020. On a month-over-month basis, S&P Case Shiller's index fell for a fourth straight month, while FHFA's gauge was unchanged. The housing market has suffered the most visible effects of aggressive Fed interest rate hikes that are aimed at curbing high inflation by undercutting demand in the economy. Unlike then, the supply of homes on the market remains extraordinarily limited and should keep a floor under house prices. "As the Fed tightens financial conditions, the housing market will likely slow further in the coming year," LPL Financial Chief Economist Jeffrey Roach said.

☆ Economy Week Ahead: U.S. Housing Market in Focus
▼ + stars: | 2022-12-26 | by ( Bryan Mena | ) www.wsj.com time to read: 1 min

Higher mortgage rates this year have cooled the housing market sharply, keeping many buyers on the sidelines. MondayU.S. stock and bond markets are closed in observance of Christmas Day, which falls on Sunday, Dec. 25. TuesdayS&P Global releases its S&P CoreLogic Case-Shiller National Home Price Index for October. The index showed that U.S. home prices fell 1% in September from August, marking the first time prices declined for three straight months in nearly four years.

☆ The share of American homes bought with all cash reached the highest level in 8 years as people wary of high mortgage rates and a looming recession turned to hard real-estate assets instead
▼ + stars: | 2022-12-26 | by ( Robert Davis | ) www.businessinsider.com time to read: +5 min

Higher mortgage rates push people to pay all cash for homes to save on interest, Redfin said. Rising interest rates and persistent inflation increased fears of a recession in 2023. Cleveland saw its share of all-cash offers grow from 32% last year to 42% in October, while Philadelphia's grew from 29% to 37%. Selma Hepp, the interim chief economist at CoreLogic, told Insider in November that mortgage rates could go as low as 5.5% by the end of next year. "For homebuyers, it's good to be aware that you can avoid paying high interest rates by paying in cash," Fairweather said.

☆ Australian economy on edge as fixed-rate mortgage pain looms in 2023
▼ + stars: | 2022-12-20 | by ( Stella Qiu | ) www.reuters.com time to read: +4 min

The cost of paying your mortgage is literally going up for everyone by thousands of dollars," said the 31-year-old Lemon. Australia's big four banks - Commonwealth Bank of Australia (CBA.AX), Westpac (WBC.AX), National Australia Bank (NAB.AX) and ANZ (ANZ.AX) - account for 75% of the country's mortgage market. read moreThe RBA fears 15% of the borrowers on variable rates could see their cash flows turn negative, assuming that interest rates rise to 3.6% in line with market expectations. Buyers' agent Lloyd Edge says some cautious mortgage holders have been selling up before their fixed-rate loans expire. Hundreds of thousands of Australians took advantage of the ultra low rates during the COVID pandemic to enter one of the world's least affordable housing markets.

☆ Factbox: Australia's indebted households critical to soft landing hopes next year
▼ + stars: | 2022-12-20 | by ( ) www.reuters.com time to read: +3 min

Here are some statistics about Australia's indebted households, the strength of which would be critical to the Reserve Bank of Australia's central scenario that the economy is headed for a soft landing next year. They now face a jump in interest rates to 5-6% when their fixed-rate loans expire next year, up from 2-3% currently. More than 40% of the borrowers took out fixed-rate loans at the peak of the market last year, compared with 15% before COVID. A third of fixed-rate loans will expire in 2024 and beyond. REPAYMENTS JUMPIn its financial stability review published in October, the RBA expects almost 60% of borrowers with fixed-rate loans would face an increase in their minimum repayments of at least 40%.

☆ Mortgage demand rises after nearly a month of declines as buyers respond to pullback in rates
▼ + stars: | 2022-12-14 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

The average 30-year fixed-rate for mortgages was at 6.42%, near its lowest in a month. Mortage rates have climbed this year with the Federal Reserve raising interest rates at an aggressive pace to combat high inflation. The survey showed the 30-year fixed rate at 6.42%, slightly higher than a week ago but close to the lowest in a month. "The ongoing moderation in home-price growth, along with further declines in mortgage rates, may encourage more buyers to return to the market in the coming months," Joel Kan, deputy chief economist at MBA said. The closely watched S&P CoreLogic Case Shiller track of housing prices showed growth in prices for single-family homes fell by 0.8% month over month in September.

☆ Home prices are falling at the fastest rate in 15 years. 7 real estate analysts and economists break down how bad they think it's going to get.
▼ + stars: | 2022-11-30 | by ( Alcynna Lloyd | ) www.businessinsider.com time to read: +8 min

As demand fades in the housing market, price cuts have become widespread. However, despite more sellers cutting asking prices, home prices have still increased by 10.6% year-over-year. On an annual basis, Fannie Mae says house price growth will turn negative beginning in the second-quarter of 2023. According to Freddie Mac's Sam Khater, house price growth will average 6.7% in 2022 and then decline by 0.2% in 2023. With inventory levels at all-time lows, he believes supply and demand dynamics will give way to significant price declines nationwide.

☆ Premarket stocks: Consumers are keeping the economy afloat... for now
▼ + stars: | 2022-11-30 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

What’s happening: Americans appear to be indulging in a healthy dose of retail therapy despite stubbornly high inflation and the possibility of a recession ahead. Consumer spending is a major driver of the economy, and the last two months of the year can account for about 20% of total retail sales — even more for some retailers, according to NRF. But when the Federal Reserve is actively trying to squash high inflation rates, they risk becoming a fly in the ointment. “Consumers’ spending is more or less unfazed not only by high inflation, but also the rate hikes intended to get prices under control,” economists at Wells Fargo wrote. The high rate of spending could agitate investors in this good-news-is-bad-news economy because it adds to inflationary pressures.

As the Fed has increased rates this year to try to tame inflation, mortgage rates have gone up, as well. High mortgage rates have depressed homebuying demand, and home prices are starting to drop on a monthly basis as as result. See more mortgage rates on Zillow Real Estate on ZillowMortgage calculatorUse our free mortgage calculator to see how today's mortgage rates will affect your monthly and long-term payments. If the Fed acts too aggressively and engineers a recession, mortgage rates could fall further than what current forecasts expect. This means your entire monthly mortgage payment, including taxes and insurance, shouldn't exceed 28% of your pre-tax monthly income.

☆ U.S. consumer confidence at four-month low; house price growth slows
▼ + stars: | 2022-11-29 | by ( Lucia Mutikani | ) www.reuters.com time to read: +5 min

The labor market has remained resilient despite the Federal Reserve's stiff interest rate increases, helping to keep consumer spending and the overall economy afloat. "That tectonic shift in consumer confidence from inflation worries to job concerns is coming though." The Conference Board's consumer confidence index fell to 100.2, the lowest reading since July, from 102.2 in October. Though house prices have came off the record highs reached during the COVID-19 pandemic-driven housing market boom, they remain significantly high. A third report from the Federal Housing Finance Agency showed house prices increased 11.0% in the 12 months through September after advancing 12.0% in August.

☆ U.S. house annual prices slow again in September
▼ + stars: | 2022-11-29 | by ( ) www.reuters.com time to read: +2 min

WASHINGTON, Nov 29 (Reuters) - U.S. single-family home prices slowed further in September as higher mortgage rates eroded demand, closely watched surveys showed on Tuesday. Monthly house prices fell in July for the first time since late 2018. House prices rose 10.6% year-on-year in September, slowing from August's increase of 12.9%. The 30-year fixed mortgage rate breached 7% in October for the first time since 2002, data from mortgage finance agency Freddie Mac showed. Tight supply will, however, likely keep a floor under house prices.

☆ U.S. consumer confidence at four-month low; house price inflation slows
▼ + stars: | 2022-11-29 | by ( Lucia Mutikani | ) www.reuters.com time to read: +6 min

"However, any potential recession could be short and shallow given the tight labor market and the hint that layoffs may not be as bad as feared." The Conference Board's consumer confidence index fell to 100.2, the lowest reading since July, from 102.2 in October. Lower-income households have borne the brunt of inflation that, before October, was marked by annual consumer prices increasing at rates not seen since the early 1980s. Though house prices have came off the record highs reached during the COVID-19 pandemic-driven housing market boom, they remain significantly high. Tight supply will, however, likely keep a floor under house prices.

☆ Stock futures are flat after major averages slide on Covid unrest in China
▼ + stars: | 2022-11-28 | by ( Sarah Min | ) www.cnbc.com time to read: +2 min

Traders work on the floor of the New York Stock Exchange (NYSE), September 6, 2022. U.S. stock futures were flat on Monday night after the major averages came under pressure from Covid protests in China, and as investors anticipated more economic data and commentary from Federal Reserve leaders this week. Growing frustration in mainland China over the country's zero-Covid policy weighed on markets around the world. On Monday, West Texas Intermediate crude futures briefly fell to their lowest point since last December. Fed Chair Jerome Powell is scheduled to speak at the Hutchins Center on Fiscal and Monetary Policy at Brookings on Wednesday.

☆ Falling house prices will help the Fed tame inflation – but they also increase the risk of a prolonged economic downturn
▼ + stars: | 2022-11-26 | by ( George Glover | ) www.businessinsider.com time to read: +5 min

But a housing market slowdown also increases the risk of a recession. The aggressive monetary tightening lifted the average 30-year US mortgage rate from 5.60% to 6.84% over the last three months, according to Bankrate. "A decline in home buying is one of the byproducts of tighter monetary policy," Macquarie's head of economics David Doyle told Insider. What has the Fed said about the housing market? Should borrowing costs remain too high for too long, those industries risk facing a decline in business at a time when monetary tightening is already squeezing their cash flows.

☆ U.S. housing faces longer descent to basement
▼ + stars: | 2022-11-22 | by ( Ben Winck | ) www.reuters.com time to read: +3 min

NEW YORK, Nov 22 (Reuters Breakingviews) - The U.S. housing market is destined to keep sliding. The highest mortgage rates in 15 years have stifled demand, leading the pace of existing home sales to slow 31% since January. An influx of new supply should depress prices from pandemic-era highs, but affordability will be squeezed well into 2023. With existing owners locked into lower mortgage rates, they’re unlikely to put their homes up for sale, curbing supply. Housing starts for single-family homes decelerated to a seasonally adjusted annual rate of 855,000 units in October, the Census Bureau said on Nov. 18.

☆ Stocks could rally as much as 20% in 2023, predicts Wharton's Jeremy Siegel
▼ + stars: | 2022-11-21 | by ( Michelle Fox | ) www.cnbc.com time to read: +2 min

Wharton finance professor Jeremy Siegel is bullish on next year's stock market, predicting equities could rise 15%, or possibly even 20%. "They haven't gotten it yet that inflation is basically over but they will, " Siegel said on " Squawk Box" Monday. His call stands in contrast to Goldman Sachs, which said in a note Monday that the S & P 500 will end 2023 essentially flat. They expect the S & P 500 to end 2023 only around 4,000 by December 2023, or about 1% higher than Friday's close. For instance, the growth in housing prices is slowing, and he expects to see more evidence of that when September's S & P CoreLogic Case-Shiller Home Price Index is released next Tuesday.

☆ Rent growth slows to the lowest level in 18 months
▼ + stars: | 2022-11-17 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +4 min

Rents in October rose 4.7% compared with October 2021, the slowest annual increase in 18 months, according to Realtor.com. The largest gains in rent were in two-bedroom units, as tenants looked for more space in the new work-from-home economy. Rent growth annually has now been slowing for nine straight months and has been in the single-digits for the past three months. Single-family rent growth has been shrinking for the past five months, but is still in the low double-digits, according to CoreLogic. The pressure on multifamily rents is trickling down to both builders and investors.

☆ Here's why Home Depot and Lowe's are booming in a housing market bust
▼ + stars: | 2022-11-16 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +3 min

Suzanne Kreiter | The Boston Globe | Getty ImagesWith rising mortgage rates, homeowners are staying in place. By the end of the first quarter of this year, before the steep runup in mortgage rates caused the housing market to falter, homeowners had a collective $11 trillion dollars in so-called tappable equity, according to Black Knight. That equity is part of a three-pronged driver of home improvement, according to the CEO of Lowe's, Marvin Ellison. "The growth rate for improvement spending will slow due to declines for existing home sales," said Robert Dietz, NAHB's chief economist. "However, an aging housing stock, work from home trends and a decline for household mobility all favor remodeling spending."

☆ Real-estate investor Mike Webb has acquired a 35-unit portfolio all while working 40 hours a week as a firefighter. He shares his top 3 tips for new investors navigating the sky-high mortgage rate env
▼ + stars: | 2022-11-10 | by ( William Edwards | ) www.businessinsider.com time to read: +4 min

The outlook for real-estate investors has dramatically changed over the last year. Mortgage rates are at their highest levels in two decades. The outlook for real-estate investors has dramatically changed over the last year. Mortgage rates have skyrocketed above 7% with the Federal Reserve taking drastic tightening measures to rein in four-decade-high inflation. Currently, 30-year fixed mortgage rates are at their highest levels in two decades.

☆ A housing economist shares estimates of where mortgage rates will be by the end of this year and next — and lists the states that may see the most price corrections.
▼ + stars: | 2022-11-04 | by ( Laila Maidan | ) www.businessinsider.com time to read: +6 min

The majority of forecasters estimate mortgage rates will peak at 6.8 to 6.9%. Idaho, Utah, Nevada, Arizona, and Texas may see the most price corrections in housing prices. The hawkish approach has significantly increased anticipated mortgage rates for this time of year, she noted. The good news is, there's a low probability that mortgage rates will peak above 7%, she said. So I think that is always the one segment of the housing market one has to be a little bit more cautious about."

In 2020 and 2021, mortgage interest rates fell to record lows. This year, with rent prices skyrocketing and mortgage interest rates hovering around 7%, people wonder if I regret my decision. Here are the five reasons I'm glad I didn't buy a home during the pandemic when interest rates were low. Mortgage interest rates will drop againOne argument friends tried to use, when convincing me to buy a house, was that mortgage interest rates were so low and they might never be this low again. However, mortgage interest rates are always fluctuating.

The average U.S. 30-year mortgage rate surpassed 7% for the first time in two decades, mortgage giant Freddie Mac said Thursday. Meanwhile, the national median mortgage payment was $1,941 in September, up from $1,839 in August and an increase from $1,844 in July, according to the Mortgage Bankers Association. “Homebuyer affordability took an enormous hit in September, with the 75-basis-point jump in mortgage rates leading to the typical homebuyer’s monthly payment rising $102 from August,” Edward Seiler, associate vice president of housing economics at the Mortgage Bankers Association, said in a statement. “With mortgage rates continuing to rise, the purchasing power of borrowers is shrinking. "With 7% mortgage rates, only 15% of Black households can currently afford to buy the typical home compared to 30% of White households," Nadia Evangelou, National Association of Realtors senior economist and director of forecasting, said in a statement.

☆ Home prices in these 8 markets are falling the fastest as the US housing market slows down at the quickest pace ever
▼ + stars: | 2022-10-27 | by ( William Edwards | ) www.businessinsider.com time to read: +4 min

It's official: home prices in the US are in a downward trend on a national level. This is killing buyers' ability to afford higher prices. Housing affordability — when taking into account home prices, mortgage rates, and incomes — is now at one of its lowest levels in decades, according to data from the National Association of Realtors. Scott Buchta, the head of fixed income strategy at Brean Capital, also said in a memo on Wednesday that home price declines would continue, eventually falling on a year-over-year basis. Many see a so-called "Fed pivot" back to dovish policy as necessary for mortgage rates to fall.

☆ The most popular US mortgage now costs Americans more than it has in 21 years as rates top 7%
▼ + stars: | 2022-10-26 | by ( Phil Rosen | ) www.businessinsider.com time to read: +2 min

The US 30-year fixed mortgage hit 7.16% in the week ending October 21, Mortgage Bankers Association data showed Wednesday. Contracts for a 30-year fixed mortgage climbed 22 basis points to 7.16% in the week leading up to October 21. It's the steepest drop since March 2009, and another data point illustrating the US housing market's slowdown. Between climbing mortgage rates and a still-tight home inventory, a housing correction is already underway, according to Comerica's chief economist Bill Adams. All this, Adams predicted, comes as the Fed effectively forces the housing market into a sharp downturn, which will drag on the broader economy.

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