The conventional wisdom is that inflation causes higher interest rates which in turn causes lower housing prices. We are now seeing an interesting phenomenon where housing prices continue to stay high and in some markets head even higher with interest…
The market was anticipating a much smaller cut by the federal reserve as inflation is still high and employment and spending is holding up. The odds were about 75% for a smaller cut, but the federal reserve definitely surprised with…
I just saw an article on CNBC with the headline: America is short 5 million houses. The media is proclaiming a housing crisis throughout the country due to the shortage. Ironically at the same time the US has hit a…
The economy is currently in a “transition” phase. To determine if the sun is setting on our current cycle, it is critical to watch for leading indicators of where we might be heading. One of the strongest predictors of a…
When I was writing this article mortgage rates were hovering right around 7%. At the same time economists are predicting a sharp decline in mortgage rates and a booming 2024 real estate market. On the other hand, the chart above…
As suspected the March consumer price index came in hotter than expected which should be no surprise to anyone buying groceries, going out to eat, or traveling, everything is considerably more expensive and there continues to be insatiable demand. What…
When I was writing this article rates were hovering right around 7%. At the same time economists are predicting a sharp decline in mortgage rates and a booming 2024 real estate market. On the other hand, the chart above shows…
Although the graph above looks like an old Atari game, it is the Federal reserve dot plot which shows a profound shift. Ironically, just a few weeks ago the Federal Reserve was touting higher rates for longer. Now the…
In a WSJ survey, economists lower recession probability below 50% and say Fed is finished raising interest rates It has been quite a ride for mortgage rates over the last two years. As of this writing mortgage rates were around…
What does the recent CPI fall mean for mortgage rates and real estate prices? A broad slowdown in inflation continued in October, likely ending the Federal Reserve’s historic interest rate increases. The slowdown came below most median estimates…