Advanced economies replicating the same monetary policy mistakes are facing monster inflation. Now with additional external pressures driving inflation even higher, policy is tightening as the economy deteriorates. That’s the opposite of what usually happens, warns global forecasting firm Oxford Economics. Typically as the economy slows, rate cuts help to craft a soft landing. This […]
Rising interest rates are cooling the US real estate market. National Association of Realtors (NAR) data shows existing-home sales fell in May. They didn’t just fall, though. Home sales fell significantly faster than homes listed for sale, helping to push the months of inventory towards more historic levels. US Home Prices Are Still Rising, But […]
No need to worry about your local home builder’s profit margin — they’re actually rising. CoConstruct, who provides construction project management software to over 100,000 clients, took a dive into builder margins. Analyzing client data, they found home builder profit margins climbed in Canada and the US. Despite rising material costs, buyers have been willing […]
Higher mortgage rates are rapidly cooling American real estate prices. US Census Bureau data shows a very sharp moderation in new housing activity in April. Sales fell to the lowest level since the public health crisis, but inventory is the standout. The market hasn’t seen this much new housing inventory since 2008, falling into a […]
The US central bank is desperately trying to signal things are under control, despite letting inflation slip. The Federal Open Market Committee (FOMC) voted to make the largest rate hike in over 20 years. They won’t stop there, though, they hinted at similar hikes for at least the next two meetings this year. Quantitative tightening […]
Time for your cheat sheet on this week’s most important stories. Canadian Real Estate Canadian Mortgage Rates May Climb Up To 7% By Next Year: Desjardins Canadians were hit with the highest inflation in 30 years and mortgages aren’t far behind. A major financial institution sees the 5-year fixed rate mortgage hitting up to 7% […]
Soaring mortgage costs are rapidly cooling the frothy American real estate market. Mortgage applications and pending home sales cratered, show leading indicators released this week. Demand is being throttled by rising mortgage rates, which are now at the highest level since 2009. Home prices have yet to respond to the fall in demand, but experts […]
Time for your cheat sheet on this week’s most important stories. Canadian Real Estate Canada’s Housing Agency Abruptly Halted Its Public Real Estate Warning System Canada’s national housing agency abruptly ended its warning system for housing. For nearly a decade, the agency warned home buyers when their local market became risky. In the September 2021 […]
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 […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Real Estate Prices Expected To Drop 24%, Can Crash 40%: Oxford Economics Oxford Economics just warned clients that home prices are in for a correction. The global forecasting firm sees Canadian home prices falling 24% by mid-2024. Previously they expected a […]
