As mortgage rates hit a 22-year high and existing homeowners continue to stay in their homes, new single family home sales hit a 17-month high in July, according to HUD and U.S. Census Bureau data. Last month’s data recorded a seasonally adjusted annual rate of 714,000 new single-family home sales, up 4.4% from the revised … Read More
As the market was expecting, the Fed raised interest rates another quarter point Wednesday afternoon, bringing the federal-funds rate to a range between 5.25% and 5.5%, a 22 year high. There will be eight weeks until the next Fed meeting. Chairman Jay Powell said there is “uncertainty in the next meeting let alone next year.” Powell also said he believed they “have a shot” at a soft … Read More
It’s a busy week for housing data. The National Association of Homebuilder’s (NAHB) reported its sentiment index rose by 1 point to 56, the seventh straight month of gains and the highest level since June 2022 (> 50 is considered positive) as low supply of existing homes for sale continues to drive demand for new construction. Housing starts and building permits … Read More
With U.S. 30-year fixed mortgage rates touching an average of 6.81% this week, the highest yet for 2023 according to Freddie Mac’s mortgage market survey, and despite tightening credit and signs consumers are already pulling back, low unemployment is creating the likelihood consumers can and will continue to spend over the next two quarters, keeping the prospect of … Read More
We are awaiting the Fed Board’s decision on interest rates Wednesday afternoon, when they are expected to pause, albeit with a hawkish tone, signaling they may not be done with rate hikes this year, and in fact lean toward keeping rates higher for longer to quell lingering inflation, before deciding to go lower late in the year. As we’ve … Read More
Although stress in the banking sector continues in this rate environment, total borrowing from the Fed’s three emergency lending programs declined from $288.7 billion the week prior to $285.7 billion last week (the figure peaked in March at $343.7 billion in the wake of the Silicon Valley Bank collapse). Borrowing from the Fed’s Bank Term Funding Program rose slightly to $93.6 … Read More
Both Warren Buffet and Jamie Dimon said in the days following the JPMorgan take-over of First Republic that the banking crisis is over, two pretty good sources on banking stress. It doesn’t mean there won’t be more bank failures—it seems inevitable there will be in the months ahead with the Fed tightening another quarter point last week putting … Read More
