Benefits of homeownership still alive and well
The Federal Reserve released its 2022 Survey of Consumer Finance report last week, which showed that homeowners continue to account for the majority of wealth accumulation in the U.S. renting continues to disappoint when it comes to generating wealth and highlights why owning a home is a wise long-term financial move.
Consumers remain undaunted by rates or debt levels
Despite the fact that credit card debt has risen by nearly $150 billion compared with pre-pandemic levels, retail sales rose again in September as consumers continue their assault on the services sector. Although some of this credit card debt has begun to grow delinquent, spending at bars, hotels, and restaurants remain strong.
Housing starts up for now, but not many single-family homes
The number of new residential housing starts rose to a 1.4 million unit pace last month. However, much of the activity was concentrated in multi-family building and the sustainability of the uptick has yet to be proven.
Rates continue to rise as bond market prices in “Higher for longer”
Daily averages for 30-year, fixed-rate mortgages have broken the 8% threshold twice over the past week as the bond market digests and accepts the Federal Reserve’s promise to keep rates higher for longer than originally anticipated.
California market trends down as rates rise
Home prices are still on the uptick, and despite dipping slightly from August for seasonal reasons, the median closed price of an existing single-family home in California rose for its 3rd consecutive month on a year to year basis.
California added nearly 9,000 net new jobs in September as gains in tourism, bars/restaurants, entertainment, and healthcare offset declines in manufacturing, tech, and professional jobs. However, the unemployment rate rose to 4.7% as the number of unemployed workers rose above 900,000 for the first time in over 18 months.
SOURCE : California Association of Realtors