July 2022 Case-Shiller Results & Forecast: Rebalancing Power
The S&P CoreLogic Case-Shiller U.S. National Home Price Index® rose 15.8% year-over-year in July (non-seasonally adjusted), down from 18.1% in June.
Expert Panel: Expect a Buyers Market by 2023
Sky-high mortgage costs are driving down competition among home shoppers, and a market firmly in favor of buyers is expected next year, according to a majority of economists and housing experts polled in the latest Zillow Home Price Expectations Survey (ZHPE). The expert, independent panel also expects rent growth to outpace inflation during the next 12 months, as priced-out potential home buyers exert additional pressure on the rental market.
Mortgage Rates Move Higher, Have Doubled This Year
Markets reacted to the Federal Reserve increasing the target Fed Funds rate by 75 basis points last week and increasing their projections of future rate levels in 2023. Fed Chair Powell’s comments last week noted a need for restrictive monetary policy in the future with a focus on containing inflation, driving investors to raise their expectations for future interest rates.
August New Home Sales: New Sales Soar Past Expectations
Home builders have been pulling back single-family building activity in the face of diminishing demand for months, but new home sales in August blew the July numbers out of the water, up over a quarter from where they were a month ago
Mortgage Rates Move Up on CPI Data Release
While interest rates continue to be volatile as markets adjust expectations for Fed rate hikes, mortgage rates ended the week basically unchanged at about 6% for a 30-year fixed rate loan. Economic data and comments from Fed officials last week point to the Federal Reserve continuing to raise the Fed Funds rate until inflation is under control.
August Existing Home Sales: Sales Continue to Drop as Market Rebalances
As the housing market rebalancing pushes on, existing home sales have declined every month in 2022, reaching the lowest level in the past two years in August.
The Fed Watch: The Impact of Uncertainty
Housing affordability in the U.S. is the worst it’s been in decades after mortgage rates shot up following two years of low-rate-plus-pandemic-fueled price growth. But that’s not the only thing making it hard for buyers to move forward. Mortgage rate volatility, the result of uncertainty introduced by the sea change in Federal Reserve policy early in the year, also plays a big part.
August Housing Starts: Market Rebalancing Tipping the Scales in Building
Home builders are in a pivotal moment as they navigate this rapidly changing environment, and they are continuing to adjust their expectations about what the future housing market will hold.
Buyers: Results from the Zillow Consumer Housing Trends Report 2022
A global pandemic, historic economic change and an unprecedented shift in the housing market have been hallmarks of the past year. But while these large-scale changes have shifted the landscape and have the potential to reshape buyers’ preferences over the longer term, many behaviors and attitudes remain the same.
Methodology: Zillow Observed Rent Index (ZORI)
The Zillow Observed Rent Index (ZORI) measures changes in asking rents over time, controlling for changes in the quality of the available rental stock.
