Good morning! It's Kristin with your daily morning digest.
Home prices jumped nearly 20% in February from a year ago, according to new data from the S&P CoreLogic Case-Shiller Index. Homebuyers in Phoenix, Tampa, and Miami are getting hit the hardest, as home prices jumped the most since last year in those three cities. But even as home prices continue to rise around the country, a slowdown in price growth could be coming. Mortgage rates have risen to just under 6%, which are already beginning to dent buyer interest.
The U.S. Census Bureau also released its monthly report on home prices today, showing the average sales price for a single-family home rose to $523,900 in March, up $15,800 from February's revised average of $508,100. But while prices were up, home sales fell 8.6% between February and March, and 12.6% from one year ago, showing signs that rising rates are impacting the housing market.
Rates could be impacted even more in the coming weeks and months. Next week, the Federal Reserve will meet to discuss interest rate hikes, one of the central bank's main tools to fight inflation. Fed Chair Jerome Powell has previously said that a more aggressive rate hike by half a percentage point will be "on the table" as the central bank hopes to bring down prices. With higher interest rates likely on the way, getting a home loan is only going to get more costly.
But even as the Fed works to bring inflation down, rising costs are weighing on consumer confidence. The Conference Board's latest Consumer Confidence Index for April edged down fractionally to 107.3 in March from 107.6 in February. That hasn't stopped consumers from buying some types of goods though, as intentions to purchase big-ticket items, like automobiles and appliances, still rose. Purchases of these kinds of durable goods climbed 0.8% last month, after falling 1.7% in February, according to the Census Bureau.
Don't forget to tune in today, at 12 noon Eastern, when I talk with Vivian Tu, former Wall Street trader and founder of YourRichBFF, about creating new revenue streams through investing. Our conversation is part of The Balance's Financial Literacy Month Instagram Live series. To catch this conversation and get updates on all of our live events this month, follow The Balance on Instagram!
- Kristin
0 Response to "Hot Housing Market May Finally Cool Down"
Post a Comment