NW Arkansas housing prices have fallen about 15%. Homes are on the market longer than last year.
FED is meeting today and tomorrow and will probably increase the rate by 1/4 point.
Bkmk
“Will The Fed continue to demolish the housing market???”
People have plenty of money from the stock market. The capitalization of major companies totaled is about $95 trillion.
Apple alone is priced at about $3 trillion. Microsoft I believe is over $2 trillion for some reason. These stocks are broadly held.
The Chinese have become wary of investing in high-priced American property. They know NYC and San Francisco are getting trashed.
The Russians will not be buying into the US for decades.
The lack of foreign interest should lower pricing in certain areas.
see the graph at:
“Chart represents weekly averages for a 30-year fixed-rate mortgage. Average for 1971-2023 as of June 15, 2023. Source: Freddie Mac PMMS”
https://themortgagereports.com/61853/30-year-mortgage-rates-chart#loan-purpose
The current mortgage rates are only higher than during the administrations of Donald Trump and Barack Obama. Barack Hussein Obama was Muslim-educated to hate interest and Trump inherited low interest rates and the Fed lowered them more to prevent a Covid economic meltdown and to boost local government real estate tax collections to preserve the generous public employee pension system. However, the Fed overdid it and now young people face a housing market lockout.
Young people will not get a house soon, but their teachers will get their pensions. ‘Free’ public education has costs.
Well, kinda. The Taylor Rule doesn’t account for all the other variables that cause inflation. Interest rate hikes are just one very crude tool to curb inflation. There is no common sense and no coordination between the Biden Administration, Congress and the Federal Reserve.
It seems to me that inflation is best fought by attacking the source of inflation.
Really, am I crazy to suggest to directly fix the things that cause inflation? What so difficult to understand?
The inflation we are experiencing is caused by multiple policy failures that inhibit productivity. The government spends too much. The government regulates too much. The government prints too much money. The government taxes too much. The government inhibits energy production. The government makes everything too complex, inefficient and unproductive. Jeez, the last one accurately describes government and every lazy ass government employee.
If you work for government, get this through your head. You don’t build a damn thing. You are a worthless piece of chit that stands in the way of American greatness. Your ass needs to be unemployed before any productive member of American society loses his job.
Shutter and defund massive portions of government and the problem is solved.
Fix the Eff’n government and then let the market set interest rates. Yeah, put the eff’n Fed out of business. Those Keynesian/MMT morons have no clue what they are doing.
The Taylor Rule has not been a useful guide to predicting monetary policy for the last 25 years.
call me crazy, but why do central planners ONLY focus on cooling inflation through weakness in demand and forced economic deterioration rather than through encouragement of supply expansion?
Homes still going up in good areas of Phoenix.
Someone flipped a home just down the street.
I am watching if it sells.