US real estate is in the first bubble since the Great Recession, and they might actually address it in time. In December, we revealed a little-known model from the Dallas branch of the US Federal Reserve showing US housing in a bubble. Central bank researchers maintain the model as an early warning system, allowing policymakers […]
Central banks went from the transitory narrative to scrambling to prevent another Great Inflation era, faster than it takes to print $100 billion in Fed Treasuries. In a speech today, US Federal Reserve Chairman Jerome Powell pledged to take extreme measures to curb inflation if needed. The central banker warned this includes the possibility of […]
The US is raising interest rates for the first time in years, and they plan to make up for lost time. The Federal Open Market Committee (FOMC), which governs the US Federal Reserve, announced a quarter-point hike today. This increases the federal funds rate lower (0.25%) and upper (0.50%) bounds for the first time since […]
American real estate just spent another quarter in bubble territory, according to its central bank. The US Federal Reserve Exuberance Index shows US real estate was still exuberant in Q3 2021. A quarter before, the market fit the criteria set out by researchers to be considered a bubble. It also happened to be the quarter […]
Global markets are puking as the Ukraine-Russia conflict presents global uncertainty and risk. BMO chief economist Douglas Porter wrote a special brief to clients today, explaining this doesn’t change much at this point. BMO still expects the Bank of Canada (BoC) and the US Federal Reserve to hike interest rates in March. The influence on […]
US mortgage activity is suddenly slowing down as interest rates climb. The Mortgage Bankers Association (MBA) Mortgage Composite Index showed a sudden drop for the week of February 18, 2022. Seasonally adjusted mortgage application activity dropped 13.1% from the week before. On an unadjusted basis, activity dropped 11% compared to the same week a year […]
Canadian and American real estate prices are both at frothy valuations, but look nothing alike. US Federal Reserve (The Fed) data shows home prices grew faster than incomes in Q2 2021 for both countries. The difference is, this has been a long-term trend for Canada since 2005. Meanwhile in the US, home prices have only […]
American credit will experience drag as inflation forces a monetary response. The US Federal Reserve announced it will double the rate it tapers its bond-buying next month. RBC economist Josh Nye has forecast the program will now end as early as March at this pace. This would be months ahead of schedule, with RBC seeing […]
If you’ve been laundering money through US real estate, you might encounter a few hurdles soon. Today the US Treasury’s Financial Crime Enforcement Network (FinCEN) gave notice of upcoming rule changes for home buying. They warn that real estate is vulnerable to money laundering by a wide range of criminals. Consequently, the regulator believes it […]
US real estate prices are looking frothy, according to central bank researchers. The US Federal Reserve (the Fed) recently updated its exuberance index for Q2 2021. The little-known index exists to identify housing bubbles early, to minimize damage. For the first time since 2007, that indicator is now warning that US real estate prices are […]
