Housing Market Recap (excerpted from Gate House’s weekly note to clients)

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

Housing Market Recap (excerpted from Gate House’s weekly note to clients)

The Fed will be in Jackson Hole next week, where Chairman Jay Powell is expected to speak following the inflation read last week: CPI registered 3.2% through July, and was up a modest .2% from last month, though core inflation is still elevated in the high 4s. Many believe the moderation has validated the Fed’s posture. Continued U.S. economic strength extending into Q3, however, adds further uncertainty to … Read More

Housing Market Recap (excerpted from Gate House’s weekly note to clients)

Fed Chairman Jay Powell is on the Hill delivering the Fed’s semiannual report on monetary policy to the Senate and House. He told the House Committee the Fed is likely to raise interest rates in the coming months but at a slower pace than they have moved over the past year, weighing the risk that the combination of their 10 … Read More

Housing Market Recap (excerpted from Gate House’s weekly note to clients)

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

Housing Market Recap (excerpted from Gate House’s weekly note to clients)

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

Housing Market Recap (excerpted from Gate House’s weekly note to clients)

The Wall Street Journal reports that after the average city office occupancy rates surpassed 50% earlier this year for the first time since the pandemic began, “many landlords viewed this milestone as a sign that employees were finally resuming their former work habits.” Office usage rates have barely budged since, as most companies have settled into a hybrid … Read More

Housing Market Recap (excerpted from Gate House’s weekly note to clients)

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

Housing Market Recap (excerpted from Gate House’s weekly note to clients)

Activity at the Fed’s discount window and the Bank Term Lending Program rose in the past week, with banks borrowing $73 billion from the window and $82 billion from the program, up slightly and continuing to stay at high levels. With the seizure of First Republic Bank over the weekend and JPMorgan picking it up early … Read More

Housing Market Recap (excerpted from Gate House’s weekly note to clients)

There continues to be a conundrum in US markets: Q1 was very strong for consumer spending, above pre-pandemic levels, substantially. There has been decent, though slowing, payroll data — the Bureau of Labor Statistics reported Friday that total non-farm payroll employment rose by 236,000 in March. It was the smallest increase in more than two years, but it … Read More

Housing Market Recap (excerpted from Gate House’s weekly note to clients)

Redfin reported more house hunters are returning to the market as mortgage rates and home prices continue to decline, but low inventory is hampering their searches. Banks continue to borrow from the new bank term funding program, up $10 billion last week to $64 billion while  borrowing from the Fed discount window slowed to $88 billion, down $22 billion according to … Read More