![]() Though, these figures have still not quelled concerns about a looming recession. Data released by the Commerce Department showed the gross domestic product (GDP) increasing at an annualized rate of 2.6 percent. also experienced growth in the third quarter of this year. This has made it more difficult for buyers to afford monthly payments while listing prices remain high. The median sales price of new houses sold last month was $470,600, while the average sales price was $517,700.Ĭonditions appear better today as the unemployment rate fell to 3.5 percent last month. The central bank dropped interest rates to near-zero levels and lawmakers passed rounds of COVID-19 relief for individual Americans to get by and small businesses to keep employees on the payroll.Īmid economic strife, the housing market boomed because of extremely low mortgage rates, intense competition bolstered by low inventory and remote work options, and soaring home prices.īut since March, the Federal Reserve has instituted a series of interest rate hikes in order to rein in sky-high inflation that has persistently hovered around 8 percent for months.Īs a result of the central bank’s efforts, mortgage rates have skyrocketed, topping 7 percent for the first time since 2002 this week. Mortgage rates could climb further as the Federal Reserve continues to fight inflation and raise interest rates. The start of the pandemic saw efforts by the Federal Reserve and Congress to stimulate the economy. ![]() But experts argue these market trends are a symptom of a correction after two years of massive growth and several key elements present during the 2008 housing crash are missing in today’s current economic climate. ![]()
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