Investors have been on edge since the Fed last week indicated it could hike interest rates once more this year and roll out rate cuts later than expected. New home sales dropped in August as mortgage rates climbed (Photo by Andrew Caballero-Reynolds / AFP) (Photo by ANDREW CABALLERO-REYNOLDS/AFP via Getty Images) Andrew Caballero-Reynolds/AFP/Getty Images/File The housing market in the world's biggest economy has been reeling as interest rates climbed, making home owners reluctant to put their properties up for sale - having earlier locked in lower rates on their mortgages. Sales of homes in the United States ticked down in July, according to industry data released on August 22, 2023, as elevated mortgage rates and limited housing supply held buyers back. “The Fed cannot afford to look past house prices’ influence on the cost of living.”Ī new home is built at a housing development in Fairfax, Virginia, on August 22, 2023. “The Fed will see the reacceleration of house prices as a reason to keep interest rates higher for longer,” said Bill Adams, chief economist at Comerica Bank. Housing data released Tuesday morning showed that new home sales fell 8.7% in August from July, as mortgage rates edged above 7% to the highest levels in decades.Īt the same time, US home prices climbed to a record high in July, marking the sixth straight month of increases as a tight supply of homes continues to drive up prices, according to the latest Case-Shiller home prices index. The stock market remains in a bull market, however - it would need to fall 20% from its peak to enter bear territory.Īll three major indexes are heading for a losing week and month. The S&P 500 is now below the threshold that it passed to enter bull market territory earlier this summer, which represents a climb of more than 20% off its most recent low last October. The Dow Jones Industrial Average fell 388 points, or 1.1%, its biggest one-day decline since March. The benchmark S&P 500 index slid 1.5%, logging its lowest close since June. Stocks tumbled Tuesday after a slew of economic data stoked fears about the US economy’s cloudy outlook and further interest rate hikes from the Federal Reserve.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |