August 2022 Case-Shiller Results & Forecast: Cooling Fall
Home values continued to fall in August as affordability took hold of both buyers and sellers. The impact was not as intense as it could have been given the slight reprieve in mortgage rates in August, which briefly dropped below 5% and helped to bolster sales counts. But that was short lived leading into September and October with much higher rates and more affordability concerns.
Mortgage Rates Rise on Persistent Inflation
Mortgage rates continued to increase last week as economic data showed more persistent inflation than expected.
September Housing Starts: Permits Stable Amid Soaring Interest Rates
Home builder sentiment plunged far below expectations in September, and housing starts fell again likely in response to interest rates picking up as builders anticipate demand falling even more
Mortgage Rates Rise to Twenty Year High
Mortgage rates pressed higher again this week, reaching 20-year highs as markets digested economic developments on both sides of the Atlantic.
The typical U.S. home value was unchanged in September from August, likely reflecting a response to a late-summer drop in mortgage rates. Rates have since surged higher, which will likely dampen demand this fall and place more downward pressure on prices.
Mortgage Rates Volatile, Roiled by Geo-Political Events
Markets were extremely volatile last week, roiled by geo-political events, economic data and concerns over the health of Credit Suisse, a large bank.
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.
