Affordability down to 16-year low as interest rates surge to two-decade high
Compared to the previous quarter, affordability declined in 36 counties, remained unchanged in 10, and increased in five. With home prices expected to be lower in the fourth quarter, California should see an improvement in affordability in the coming months if rates continue to decline.
Home purchase sentiment dips to record low
Consumers were frustrated about housing market conditions as interest rates remained elevated and home prices stayed high.With rates reaching a 23-year high in late October, the share of consumers who said that it would be a good time to buy reached a new survey low at 15%, according to the latest Fannie Mae national housing survey.
Consumers plan to spend less this holiday season
With consumer confidence remaining on a declining trend in recent months, Americans are entering the holiday season in a cautious mood. In general, older consumers (45 and up) expect their expenses on gifts to increase this year, while younger consumers intend to cut back.
Decline in holiday hiring demand suggests slowdown in job growth in coming months
With many economists projecting a slowdown of the economy as consumer spending begin to show signs of pulling back, businesses also plan on hiring fewer extra workers for holiday jobs this year compared to last year.
Inflation expectations improve slightly in October
With a median expected household income growth of only 3.1%, it is not a surprise that inflation remains one of the utmost concerns consumers have in recent months.
Housing affordability continued to trend down in the third quarter as costs of borrowing remained elevated in recent months. While the market has seen some slight improvement in mortgage rates in the past couple of weeks, it will take time for the dip in rates to be converted into actual transactions.
SOURCE : California Association of Realtors