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Lower rent prices and multi-decade-high mortgage rates mean that it's smarter to rent than buy in most large US cities right now, according to Realtor.com. Disparities between buying and renting stemmed from a split in how median costs changed in the last 12 months. "The advantage of renting became more pronounced in all rent-favoring markets," Xu and Hale wrote. But there were three cities where buying was actually cheaper than renting in August, according to Realtor.com: Memphis, Tennessee; Pittsburgh, Pennsylvania; and Birmingham, Alabama. Below are the 10 metro areas where renting makes more sense than buying right now, along with the median rent, the median monthly cost of buying and how it compares to renting, and the year-over-year changes for renting and buying.
Persons: Jiayi Xu, Danielle Hale, Xu, Hale, Realtor.com, Freddie Mac Locations: Realtor.com, Memphis , Tennessee, Pittsburgh , Pennsylvania, Birmingham , Alabama
The National Association of Realtors' Pending Home Sales Index fell 7.1% to 71.8 from July's revised 77.3. The decrease, the largest since September 2022, exceeded the median economist forecast for a 0.8% fall, according to a Reuters poll. On a year-over-year basis, pending sales were down 18.7%. "It's clear that increased housing inventory and better interest rates are essential to revive the housing market." Pending sales of existing homes slid by the most in the South and West regions.
Persons: Lucy Nicholson, Lawrence Yun, Amina Niasse, Andrea Ricci Organizations: REUTERS, National Association of Realtors, Mortgage, Association, Federal, Thomson Locations: Los Angeles , California, U.S, South, West
Mortgage interest rates just hit a level not seen since the year 2000. The 30-year fixed jumbo mortgage rate increased to 7.34%, the highest rate in the history of the MBA's jumbo rate series dating back to 2011. After record low interest rates throughout the first few years of the pandemic, and a refinance boom, there are precious few borrowers now with mortgage rates high enough to benefit from a refinance. Today's potential buyers are facing an unprecedented dynamic of a historically low supply of homes for sale, coupled with both rising interest rates and rising prices. Interest rates continued to move higher this week, according to a separate survey from Mortgage News Daily.
Persons: Joel Kan Organizations: Mortgage, Market, Mortgage News
The 10-year Treasury yield was trading over 5 basis points lower at 4.501%. It had risen as high as 4.566% on Tuesday, its highest level since 2007. The 2-year Treasury yield was last down by more than 2 basis points to 5.052%. U.S. Treasury yields fell on Wednesday, with the yield on the 10-year Treasury coming down from the fresh 15-year high it hit on Tuesday. August's durable goods order figures are expected Wednesday, with economist surveyed by Dow Jones expecting a 0.5% decline.
Persons: Dow Jones, Wells Fargo, Biden Organizations: U.S, Treasury, Investors, Conference, Federal Reserve
The ongoing United Auto Workers strike could present a risk to the fight against inflation, according to Barclays. According to Sriram, this could consequently put upward pressure on auto prices, which have played an outsize role in persistent inflation pressures. "We think upside risks to core inflation are likely to materialize primarily in used car prices in the event of a sharp inventory drawdown," said Sriram. "Used car prices, which account for 3.5% of core CPI (but only 0.5% of core PCE), tend to be sensitive to new car inventories, more so in this post-pandemic period, with car inventories tight and new car prices substantially elevated." She noted that the strike will not likely affect auto prices through October.
Persons: , Pooja Sriram, Sriram, — CNBC's Michael Bloom Organizations: United Auto Workers, Barclays, — Ford, General Motors Locations: July's
US new home sales tumble in August
  + stars: | 2023-09-26 | by ( ) www.reuters.com   time to read: +3 min
New home sales plunged 8.7% to a seasonally adjusted annual rate of 675,000 units last month, the Commerce Department said on Tuesday. July's sales pace was revised higher to 739,000 units from the previously reported 714,000 units. Economists polled by Reuters had forecast new home sales, which account for a small share of U.S. home sales, falling to a rate of 700,000 units. New home sales are counted at the signing of a contract, making them a leading indicator of the housing market. At August's sales pace it would take 7.8 months to clear the supply of houses on the market, up from 7.0 months in July.
Persons: Octavio Jones, Freddie Mac, Lucia Mutikani, Andrea Ricci Organizations: REUTERS, Rights, U.S, Commerce Department, Reuters, Treasury, Federal Reserve, Data, National Association of Home Builders, Thomson Locations: Tampa , Florida, U.S, Wells Fargo, West, Midwest, Northeast
[1/9] Spain's opposition People's Party leader Alberto Nunez Feijoo reacts after giving a speech during an investiture debate at parliament in Madrid, Spain, September 26, 2023. REUTERS/Juan Medina Acquire Licensing RightsMADRID, Sept 26 (Reuters) - Spain's rightwing opposition leader Alberto Nunez Feijoo on Tuesday launched a likely fruitless bid to form a government following an election in which no party won a majority. Feijoo will get a second vote on Friday, which only requires a simple majority. If, as expected, Feijoo fails, acting Prime Minister Pedro Sanchez, who leads the Spanish Socialist Workers Party (PSOE), will have two months from Wednesday to make his bid before parliament is dissolved and fresh elections are called. In his speech, Feijoo outlined the policy proposals he would carry out as prime minister, including lowering taxes for entrepreneurs and low- and middle-income earners and devising a plan to capture foreign investment.
Persons: Alberto Nunez Feijoo, Juan Medina, Feijoo's, Feijoo, Pedro Sanchez, Sanchez, Eurointelligence, Esquerra, Belen Carreno, Emma Pinedo, Charlie Devereux, Bernadette Baum Organizations: People's, REUTERS, Rights, Feijoo's People's Party, Debating, Spanish Socialist Workers Party, PSOE, Vox, Union, Canarian Coalition, Basque Nationalist Party, Galician Nationalist Bloc, Thomson Locations: Madrid, Spain, Rights MADRID, Catalonia, Catalan, Basque
Slump in UK retail sales eases in September, CBI says
  + stars: | 2023-09-25 | by ( ) www.reuters.com   time to read: +2 min
The CBI's September monthly retail sales survey - conducted between Aug. 25 and Sept. 13 - showed the headline balance rebound to a three-month high of -14 from August's more than two year low of -44. "There are some elements of optimism in our survey with retailers expecting the recent fall in sales to continue to ease," CBI Principal Economist Martin Sartorius said. Retailers' expected sales balance for October rose to a three-month high of -8. Britain's most recent official retail sales data showed a 0.8% month-on-month growth in sales volumes in August after a sharp 1.1% drop in July, when unusually wet weather upset normal summer spending patterns. The chief executive of supermarket Aldi UK said on Monday that cost of living concerns continued to influence food shopping habits.
Persons: Peter Nicholls, Martin Sartorius, David Milliken, Kylie MacLellan Organizations: REUTERS, of British Industry, CBI, Bank of, Aldi, Thomson Locations: London, Britain, Bank of England
EY chief economist Gregory Daco thinks "consumers are becoming more conservative with their spending." Coming up is another headwind: the restart of federal student-loan payments. The different economic threats means consumer spending growth may not be so hot next year, as consumers are already reducing their spending. Other economists have pointed out how the upcoming student-loan payment restart will have an impact on the economy. Have you changed your spending habits or are you spending less on certain items given the restart of student-loan payments, fewer savings, and other factors?
Persons: Gregory Daco, Taylor Swift, it's, Daco, Torsten Sløk, NYU Stern, David Kelly Organizations: Service, Consumer, Bureau of Labor Statistics, BLS, NYU, Morgan Asset Management, AAA, CNBC Locations: Wall, Silicon, American, , mhoff@insider.com
I was in town for an event by Chinese electric car company Nio , which was vying with Huawei's big Connect conference for literal space and attention in a week of tech news. Electric car manufacturers are abuzz In the world of electric cars alone, Baidu -backed startup Jidu launched its car on Tuesday afternoon; Xpeng also unveiled its new G9 electric SUV. Nio, which had just wrapped its fifth car release in four months the prior week, launched a smartphone on Thursday. A competitive spirit, particularly in tech China's cutthroat competition hasn't been lost with the slowdown. While she hasn't had time to give the Nio phone a good look yet, she said she's a regular at the local Nio House, and invites family and friends there.
Persons: Xpeng, Leapmotor, William Li, Li, that's, Meng Wanzhou, JD.com, JD, Peter Alexander, Alexander, Frank Fan, Nio, Angela Cai, Cai, hasn't, she's, — CNBC's Michael Bloom Organizations: Baidu, Wednesday, CNBC, Companies, Huawei, Netflix, Ben Advisors, ., Starbucks, Apple, China, Bank of America Locations: Beijing, Shanghai, Arcfox, U.S, China, China .
Learn moreWhen the Apple Watch Series 9 released in September 2023, it immediately supplanted the Series 8 in Apple's lineup as the company's flagship. Lowest Price Apple Watch Series 8 (41mm, GPS) The Apple Watch Series 8 features a temperature sensor, car crash detection, and low-power mode that weren't available to previous generations of the smartwatch. Both watches are also compatible with a variety of the best Apple Watch bands and the best Apple Watch Series 9 bands. AdvertisementAdvertisementApple Watch Series 9 vs. Series 8: Smartwatch featuresThe Series 9 and Series 8 are also nearly identical in terms of smartwatch functionality. AdvertisementAdvertisementApple Watch Series 9 vs. Series 8: PriceThe Apple Watch Series 9 is available for purchase starting at $399 for the aluminum body model and $699 for the stainless steel option.
Persons: that's, Siri, Rick Stella, Antonio Villas, it's, isn't Organizations: Apple, July's, Apple Health, Health, Boas
Spain's Prime Minister Pedro Sanchez arrives to address the 78th Session of the U.N. General Assembly in New York City, U.S., September 20, 2023. Most parties - except PSOE - and rival private pollsters have questioned the agency's neutrality and methodology. The new poll gives third place to the left-wing alliance Sumar at 11.9% and fourth to the far-right Vox with 11.1%. Should those efforts to woo the pro-independence parties prove to be unsuccessful, a repeat election would be held in mid-January. Reporting by David Latona; Editing by Andrei Khalip and Barbara LewisOur Standards: The Thomson Reuters Trust Principles.
Persons: Pedro Sanchez, Eduardo Munoz, Vox, Alberto Nunez Feijoo, David Latona, Andrei Khalip, Barbara Lewis Organizations: Spain's, General Assembly, REUTERS, Rights, Spain's Socialists, People's Party, for Sociological Studies, CIS, Socialist Party, PSOE, Thomson Locations: New York City, U.S, Rights MADRID, Sumar, Navarre, Catalan, Basque, Madrid
A passageway near the Bank of England (BOE) in the City of London, U.K., on Thursday, March 18, 2021. LONDON — The Bank of England on Thursday ended a run of 14 straight interest rate hikes after new data showed inflation is now running below expectations. Investors on Wednesday ramped up bets that the Bank would pause its interest rate hiking cycle after U.K. inflation came in significantly below expectations for August. Thomas Verbraken, executive director of risk management research at MSCI, said the burning question is whether the Bank of England's Thursday decision signals the peak of the interest rate cycle. Forward looking indicators suggest the U.K. economy is already flirting with recession, a backdrop consistent with cooling wage growth and a policy pivot," Mehdi said.
Persons: BOE, Andrew Bailey, We'll, Marcus Brookes, BoE, Brookes, Thomas Verbraken, Hussain Mehdi, Mehdi Organizations: Bank of England, City of, LONDON, Bank, U.S, Monetary, MPC, Quilter Investors, U.S . Federal Reserve, Bank of England's, HSBC Asset Management, Bank of, Fed, European Central Bank Locations: City, City of London, Bank of England's
As they did in June, Fed policymakers at the median still see the central bank's benchmark overnight interest rate peaking this year in the 5.50%-5.75% range, just a quarter of a percentage point above the current range. But from there, the Fed's updated quarterly projections show rates falling only half a percentage point in 2024 compared with the full percentage point of cuts anticipated at the meeting in June. Interest rate sensitive two-year Treasury yields hit 17-year highs on Wednesday after the Fed decision. "It looks as though the Fed is trying to send as hawkish a signal as it possibly can," said Gennadiny Goldberg, interest rate strategist at TD Securities. The yen was down 0.13% versus the greenback at 148.05 per dollar after the Fed decision.
Persons: Dado Ruvic, Karl Schamotta, Schamotta, Jerome Powell, Gennadiny Goldberg, Dominic Bunning, BoE, Masato Kanda, Janet Yellen, bitcoin, Saqib Iqbal Ahmed, Herbert, Joice Alves, Brigid Riley, Marguerita Choy, Jonathan Oatis Organizations: REUTERS, U.S, Federal Reserve, TD Securities, Bank of England, Reuters, FX Research, HSBC, Washington, Treasury, Thomson Locations: Toronto, Japan, U.S, New York, London, Tokyo
The U.S. dollar index , which measures the currency against a basket of rivals, was 0.1% lower at 105.00. The pound was volatile, last down 0.23% to $1.2364 after touching its lowest in almost four months following data showing UK inflation slowed more than expected in August. "This can drag GBP down, especially against the USD where pricing for rate cuts may already be overstretched". The yen flattened at 147.87 after touching a fresh 10-month weak-point against the dollar of 148.17 ahead of the Fed decision. The offshore yuan was unchanged at 7.3055 after China met market expectations by keeping its benchmark lending rates unchanged on Wednesday.
Persons: Dado Ruvic, BoE, Dominic Bunning, Bunning, Goldman Sachs, Powell, Elsa Lignos, Masato Kanda, Janet Yellen, Joice Alves, Brigid Riley, Gerry Doyle, Emelia Organizations: REUTERS, Federal Reserve, Bank of England, U.S, Reuters, FX Research, HSBC, FX, RBC Europe, Washington, Treasury, Bank of Japan's, Thomson Locations: Japan, U.S, China, London, Tokyo
Investors put a nearly 50-50 chance on the BoE keeping rates on hold on Thursday after 14 back-to-back increases stretching back to December 2021. Investors had been overwhelmingly expecting the BoE to raise interest rates for the 15th time in a row on Thursday, taking Bank Rate to 5.5% from 5.25%. "The inflation figures may not sway the Bank of England away from raising interest rates tomorrow," Yael Selfin, chief economist at KPMG UK, said. Britain's inflation rate remains high - topped only by Austria and Iceland among Western European countries in August. But core inflation - which strips out volatile food and energy prices - fell by more than the headline rate to 6.2% from 6.9% in July.
Persons: Hunt, BoE, Yael Selfin, Price, Rishi Sunak, Jeremy Hunt, William James, Hugh Lawson Organizations: Reuters, Bank of England, Sterling, U.S, Investors, National Statistics, KPMG, Labour Party, Thomson Locations: July's, British, Austria, Iceland, Western, Britain
The Federal Reserve paused its interest rate hikes on Wednesday. On Wednesday, the Federal Open Market Committee announced it would be pausing its interest rate hikes in September. The Fed still has work to do to reach its 2% inflation target. AdvertisementAdvertisementBut Powell cautioned in July that further rate hikes are not off the table for the rest of the year. Of note, 12 out of 19 of the Fed members who vote on interest rate decisions predicted one more hike in 2023.
Persons: Powell, July's, Jan Hatzius, Goldman Sachs, Jerome Powell, Janet Yellen, We've Organizations: Federal Reserve, Service, Federal, Market Committee, Fed, NYU, of Labor, Statistics, CNBC Locations: Wall, Silicon
There are six key economic indicators for markets to gauge the health of the US economy. The US is likely headed for a mild recession, according to one chief investment officer. Markets are currently pricing in a 99% chance the Fed will choose to keep interest rates unchanged, according to the CME FedWatch tool. Small business optimism is waningSmall business optimism slumped over the past month to 91.3, down 0.6 points from July's reading. But real wages of Americans have actually fallen 0.5% over the past month, according to the Bureau of Labor Statistics, which could spell trouble for the US consumer.
Persons: Brent Schutte, Schutte Organizations: Service, Federal Reserve, Fed, Northwestern Mutual Wealth Management, Cleveland Fed, Bureau of Labor Statistics, San Francisco Fed, University of Michigan's Locations: Wall, Silicon
America is stuck in a greased-pig economy
  + stars: | 2023-09-19 | by ( Linette Lopez | ) www.businessinsider.com   time to read: +10 min
At the same time that prices were cooling off, the rest of the economy seemed to be holding up. And consumers were so intent on spending money to have a good time that cities let Beyoncé dictate public transit. In this greased-pig economy, stability depends on how confident investors and policymakers are that they're close to catching the pig. Moving in a messIn the messy economy the pandemic left us, it's not easy to pinpoint exactly why inflation has been so stubborn. CPI inflation peaked at 9% in June 2022 and has been going down steadily since.
Persons: it's, Jerome Powell, Mike Konczal, Konczal, we've, Price, proclivity, that's, Taylor Swift, we'd, Charles Evans, Christine Lagarde, Morgan, Jamie Dimon, Roosevelt, , you've, Justin Simon, Jasper Capital, Linette Lopez Organizations: Consumers, Federal, Roosevelt Institute, Fed, Chicago Fed, European Central Bank, Census Locations: American, America, Jasper
At the same time that prices were cooling off, the rest of the economy seemed to be holding up. In this greased-pig economy, stability depends on how confident investors and policymakers are that they're close to catching the pig. Moving in a messIn the messy economy the pandemic left us, it's not easy to pinpoint exactly why inflation has been so stubborn. CPI inflation peaked at 9% in June 2022 and has been going down steadily since. But with inflation still above the Fed's goal, it's clear we need to recalibrate some on the demand side still.
Persons: it's, Jerome Powell, Mike Konczal, Konczal, we've, Price, proclivity, that's, Taylor Swift, we'd, Charles Evans, Christine Lagarde, Morgan, Jamie Dimon, Roosevelt, , you've, Justin Simon, Jasper Capital, Linette Lopez Organizations: Consumers, Federal, Roosevelt Institute, Fed, Chicago Fed, European Central Bank, Census Locations: American, America, Jasper
This was reversed in August as strong crude imports and steady domestic output outweighed the record refinery processing rates. This was up 19.6% from the same month in 2022 and also stronger than July's 14.87 million bpd. Crude imports were 12.43 million bpd in August, the third-highest daily rate on record and up 20.9% from July and 30.9% from August last year. Subtracting processing of 15.23 million bpd leaves a surplus of 1.32 million bpd that flowed into storage tanks. The question is how will China's refiners respond to the higher crude oil prices?
Persons: shouldn't, China doesn't, China's, refiners, Sam Holmes Organizations: National Bureau of Statistics, Brent, Saudi, Reuters, Thomson Locations: LAUNCESTON, Australia, China, OPEC, pare, Iran, Russia, Venezuela
A view shows the placards of the political parties in front of the European Central Bank (ECB) building in Frankfurt, Germany, September 14, 2023. The central bank for the 20 countries that use the euro has already raised interest rates 10 times to record levels but inflation remains well above its 2% target. ECB President Christine Lagarde said last week that policymakers had not discussed the bond-buying schemes at their latest policy meeting. She described the PEPP as the ECB's "first line of defence" to preserve policy transmission - central bank jargon for bond market stability in the most indebted countries. Slovenian central bank governor Bostjan Vasle recently backed selling bonds bought under the ECB's older Asset Purchase Programme, which is less flexible than the PEPP.
Persons: Wolfgang Rattay, Christine Lagarde, Bostjan Vasle, Peter Kazimir, Catherine Evans Organizations: European Central Bank, REUTERS, Central Bank, Reuters, ECB, Thomson Locations: Frankfurt, Germany, Italy, FRANKFURT, Athens, Slovenian, PEPP, Sintra
UK manufacturing trade body cuts outlook for 2023
  + stars: | 2023-09-17 | by ( Suban Abdulla | ) www.reuters.com   time to read: +2 min
REUTERS/Phil Noble/File Photo Acquire Licensing RightsLONDON, Sept 18 (Reuters) - Britain's main manufacturing trade body on Monday cut its forecast for the sector's growth for this year and next, citing a sharp fall in factory output and economic uncertainty. Trade body Make UK expects output to fall 0.5% in 2023, down from its June forecast for a 0.3% drop, and grow just 0.5% in 2024. "Manufacturers are seeing a very sharp slowdown in activity as the potent cocktail of rising interest rates, cost of living and slowing overseas markets bites hard," Verity Davidge, policy director at Make UK said. "But it is the scale of the fall in the indicators this quarter that comes as a surprise and highlights the extent of the slowdown on UK manufacturing." Make UK's quarterly survey said the balance for manufacturing output was the weakest performance for production since the last quarter in 2020, during the COVID-19 pandemic.
Persons: Phil Noble, Verity Davidge, Richard Austin, Suban Abdulla, Andy Bruce Organizations: Rover, REUTERS, Make, Bank of England, Bank of, BDO, Manufacturers, Thomson Locations: Solihull, Britain, July's
August throughput was also up from July's 14.87 million bpd. Year-to-date throughput gained 11.9% from a year earlier to 491.4 million tons, or 14.76 million bpd. The NBS data on Friday also showed China's domestic crude oil production in August gained 3.1% from a year earlier to 17.47 million metric tons, or 4.11 million bpd. The year-to-date volume rose 2.1% from a year earlier to 139.85 million tons, or 4.2 million bpd. Natural gas production last month rose 6.3% from a year earlier to 18.1 billion cubic metres (bcm), the NBS said.
Persons: Andrew Hayley, Chen Aizhu, Christian Schmollinger Organizations: Air, National Bureau of Statistics, NBS, Thomson
Workers are seen on a ship carrying containers at Tanjung Priok Port in Jakarta, Indonesia, January 11, 2021. REUTERS/Willy Kurniawan/File Photo Acquire Licensing RightsSummary Trade data due at 0200 GMT on Friday, Sept 15JAKARTA, Sept 14 (Reuters) - Indonesia's trade surplus in August likely widened slightly from a month earlier amid falling imports, even as exports were expected to remain weak, a Reuters poll showed on Thursday. The median forecast of 19 economists surveyed was for Southeast Asia's biggest economy to book a surplus of $1.55 billion, versus $1.31 billion in July. Indonesia's exports and trade surplus have been shrinking as prices of its top commodities, like coal and palm oil, fall and global demand weakens. Weak exports have also hit economic growth in the last quarter.
Persons: Willy Kurniawan, Josua Pardede, Veronica Khongwir, Susobhan Sarkar, Stefanno Sulaiman, Kanupriya Kapoor Organizations: REUTERS, Southeast Asia's, Bank Permata, Thomson Locations: Tanjung Priok Port, Jakarta, Indonesia, JAKARTA
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