Housing-Market Bottom
Key housing indicators have rebounded in early months of 2023
Mortgage rates have likely peaked with Fed hikes almost done
Historically, housing has been a critical driver of the broader business cycle. Low interest rates can boost demand for homes, which drives up prices, building activity and construction jobs. Higher prices also help support consumer spending through the so-called “wealth effect.”
And when the Federal Reserve raises rates, it all tends to go in reverse.
Now, with the Fed poised to wrap up its tightening campaign — perhaps next week — mortgage rates have probably peaked.
The S&P CoreLogic Case-Shiller index of prices in 20 US cities in February was nearly 5% below last year’s peak
They jumped more than 40% from June 2020 to June 2022.
Matthew Boesler Bloomberg 25 april 2023
Kommentarer