From Our Economists
Climate Change Pushes Up Home Insurance Premiums
Originally published to Forbes on September 18, 2023. A recent study from PolicyGenius found that quoted homeowner’s insurance premiums increased by 21% nationally from May 2022 to May 2023. Florida experienced the largest jump with premiums increasing by 35%. The steep increases in homeowner’s insurance costs contribute to the already intractable housing affordability crisis, as homeowners
4 Ways to Buy Your First Home, Even as Affordability Worsens
Originally published to Forbes on September 12, 2023. For many young Americans, the dream of owning a home feels less like a middle-class milestone and more like a prize available only to those with family money or extraordinary incomes. The monthly mortgage payment on a median-priced home has increased 15% in the last year, while incomes
How Would a Government Shutdown Impact the Housing Market? Low Demand in D.C., Temporary Dip in Mortgage Rates, Loan Delays
The impact of a federal government shutdown on the economy and the U.S. housing market would likely be small, unless it lasts much longer than expected. It could temporarily bring down mortgage rates, which would boost homebuying demand–except in Washington, D.C., where many federal employees would be furloughed. Homebuyers relying on government-backed mortgage loans and
Fed Projects Rates Will Be Higher For Longer, Upping Chance of Elevated Mortgage Rates Into Next Year
The Fed increased projections for 2024 and 2025 rates at its September meeting, though it kept rates unchanged for now. That will likely keep mortgage rates higher for longer. The Federal Reserve held interest rates steady at its September meeting, as expected, and acknowledged that the U.S. job market is slowing down. But the Fed
The UAW Strike Could Be a Drag on the U.S. Economy: Here’s the Good News and Bad News For the Housing Market
The United Auto Workers strike could hamper U.S. economic growth and potentially encourage the Fed to lower interest rates, which would bring down mortgage rates. But it could also increase car prices, pushing up inflation and motivating an interest-rate hike. The United Auto Workers strike is bigger and more disruptive than expected, and compared to
Disappointing Inflation Report Increases Odds of a November or December Rate Hike
The Fed remains unlikely to hike rates at next week’s policy meeting The latest inflation report on consumer prices in August came in a hair above expectations. Focusing on the month-over-month numbers, headline inflation came in at 0.6%, which was in line with expectations, because of higher gas prices. Core inflation was 0.3%, which was
Climate Change Pushes Up Home Insurance Premiums
Originally published to Forbes on September 18, 2023. A recent study from PolicyGenius found that quoted homeowner’s insurance premiums increased by 21% nationally from May 2022 to May 2023. Florida experienced the largest jump with premiums increasing by 35%. The steep increases in homeowner’s insurance costs contribute to the already intractable housing affordability crisis, as homeowners
4 Ways to Buy Your First Home, Even as Affordability Worsens
Originally published to Forbes on September 12, 2023. For many young Americans, the dream of owning a home feels less like a middle-class milestone and more like a prize available only to those with family money or extraordinary incomes. The monthly mortgage payment on a median-priced home has increased 15% in the last year, while incomes
How Would a Government Shutdown Impact the Housing Market? Low Demand in D.C., Temporary Dip in Mortgage Rates, Loan Delays
The impact of a federal government shutdown on the economy and the U.S. housing market would likely be small, unless it lasts much longer than expected. It could temporarily bring down mortgage rates, which would boost homebuying demand–except in Washington, D.C., where many federal employees would be furloughed. Homebuyers relying on government-backed mortgage loans and
Fed Projects Rates Will Be Higher For Longer, Upping Chance of Elevated Mortgage Rates Into Next Year
The Fed increased projections for 2024 and 2025 rates at its September meeting, though it kept rates unchanged for now. That will likely keep mortgage rates higher for longer. The Federal Reserve held interest rates steady at its September meeting, as expected, and acknowledged that the U.S. job market is slowing down. But the Fed
The UAW Strike Could Be a Drag on the U.S. Economy: Here’s the Good News and Bad News For the Housing Market
The United Auto Workers strike could hamper U.S. economic growth and potentially encourage the Fed to lower interest rates, which would bring down mortgage rates. But it could also increase car prices, pushing up inflation and motivating an interest-rate hike. The United Auto Workers strike is bigger and more disruptive than expected, and compared to
Disappointing Inflation Report Increases Odds of a November or December Rate Hike
The Fed remains unlikely to hike rates at next week’s policy meeting The latest inflation report on consumer prices in August came in a hair above expectations. Focusing on the month-over-month numbers, headline inflation came in at 0.6%, which was in line with expectations, because of higher gas prices. Core inflation was 0.3%, which was
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