The Fed has two jobs: (1) control inflation and (2) maximize employment. So how’s that going? “That’s a change in tone from last week, when most Fed policymakers voted to leave their influential interest rate unchanged for the fifth time this year. Fed officials had been content to wait and see how tariffs were moving […]
– by New Deal democrat Let me tie this morning’s report on April existing home sales into my two last posts (Part 1 and Part 2), which concerned the huge role that shelter prices, and the underlying shortfall in housing capacity, have in the continued elevation in overall consumer prices. So let’s start by looking […]
CNN Tells Us, Young People can’t Afford Homes Even Though more Young People have Homes now than when Trump was in the White House, CEPR, Dean Baker Major media outlets continually push the theme that young people can’t buy homes even though a larger share of households headed by someone under age 35 own homes […]
Dilemma . . . Do I make a jump to a mortgage at 6 to 7% just to have a bigger house? There is more to this than just interest rates. Building supplies as NDd mention have been an issue. If they are decreasing in cost, builders can lower prices to help sell new houses. […]
The importance of 10 (and 20) year new highs in interest rates – by New Deal democrat As you may have already read elsewhere, interest rates on the 10 year US Treasury just made a new 10+ year high. Perhaps more importantly, 30 year mortgage rates made a new 20+ year high: Both rates are slightly […]
Interest rates, the yield curve, and the Fed chasing a Phantom (lagging) Menace There’s a lot going on with interest rates in the past few days. Mortgage rates have increased above 7%: This is the highest rate since 2008. Needless to say, if it lasts for any period of time it will further damage the […]
The worst interest rate upturn since 1994 is likely to produce the worst housing downturn in over a decade No economic news of note today; but tomorrow we will see housing permits and starts for March, and on Wednesday existing home sales. So let’s take an important look at housing. The recent increase in mortgage […]
The worst interest rate upturn since 1994 is likely to produce the worst housing downturn in over a decade No economic news of note today; but tomorrow we will see housing permits and starts for March, and on Wednesday existing home sales. So let’s take an important look at housing. The recent increase in mortgage […]
August housing construction shows stabilization, following interest rate moderation This morning’s report on August housing permits and starts shows that the stabilizing of mortgage rates in the past few months has now stabilized housing construction. Housing starts increased 3.9% m/m, and total permits increased 6.0%. The less volatile single-family permits increased 0.6%. As a result, […]
by Joseph Joyce Will A Rise in Interest Rates Lead to a New Debt Crisis? The question of when the Federal Reserve will begin to reverse its loose policy stance continues to be a topic of widespread speculation. At last month’s meeting of the Federal Open Market Committee, its members showed a willingness to cut back on asset […]