Home prices are up: Housing prices are rising again after falling in the second half of last year, largely due to limited supply.
- One source “said there are roughly half as many homes for sale as there were in 2019, and even fewer listed for $300,000 or lower. Owners who purchased homes when interest rates were near record lows are not eager to sell.”
Mortgage rates remain high: Mortgage rates skyrocketed as the Federal Reserve raised interest rates to combat inflation, but “demand [has] rebounded as rates trended downward from their peak above 7 percent last fall…”
- Last week, the average 30-year fixed-rate mortgage hit its highest level—6.97%—since November 2022.
Home prices are increasing inflation: The consumer price index data from last week showed the slowest annual rise in inflation since 2021—at 3%. However, housing prices “fuel[ed] more than 70 percent of price growth in June.”
The Federal Reserve could soon raise rates again: Though the central bank paused its interest-rate hikes in June following 10 consecutive rate increases, officials have indicated they are likely to raise rates again this month.