New home sales remain on an upward trend
Despite mortgage rates hitting two-decades high in recent weeks, new home sales continued to increase in September. Sales of new single-family homes last month reached a seasonally adjusted annualized rate of 759,000 for the U.S., an increase of 12.3% from August and a jump of 33.9% from the same month last year.
Consumer spending rising amidst falling income
Although wage growth remains relatively strong, above-average inflation more than offset the gains in nominal incomes and suggests that consumer spending growth may not be sustainable as debt levels and debt delinquencies rise as savings rates have fallen.
Interest rates continue their upward trend, again
he daily interest rates have hovered in the 8% range for the past week. With rates expected to remain elevated, the typical seasonal slowdown could be exaggerated by the added impact of higher rates.
Market shift affecting buyers and sellers
homes that are priced right and that present well are still selling relatively quickly and more than 2 out of 5 transactions last week still closed above list price. It remains a great time to buy and sell, but buyers and sellers need to be cognizant of the recent market dynamics and adjust their behavior accordingly.
Markets betting on no movement at upcoming Fed meeting
The more anticipated release will come after the meeting scheduled for December 13, what the FOMC will release updated projections along with a new “dot plot” of rate expectations for 2024.
This was a relatively quiet week for economic and market news as we look ahead to new inflation data and an upcoming Federal Reserve meeting during the first half of November.
builders are offering an increasing number of price and other sales incentives to cope with declining demand.
SOURCE : California Association of Realtors