All articles tagged with #us housing
US housing starts for new home construction rebounded sharply in February, increasing by 10.7% to a 1.52 million annualized rate, the largest rise since May. This recovery comes after a period of weather-related weakness at the beginning of the year, with builders benefiting from slightly more favorable mortgage rates and a shortage of existing houses for sale.
Despite calls for a recession, the US housing market remains strong, although a surge in construction could lead to layoffs. The Federal Reserve is expected to cut interest rates, but the timing is uncertain. The drop in oil prices is not indicative of a recession, but rather reflects increased production in the US. Longer-term yields are expected to rise again.
Investment expert David Tawil warns of a potential decade-long slump in the US housing market due to high interest rates, which could "crush" real estate. Tawil predicts a fallout starting with commercial property and later affecting the residential sector. He suggests investors look to technology and cryptocurrencies, particularly Bitcoin, as alternative investment options. Tawil's team is bullish on Bitcoin, with a year-end target of $50,000, citing the flow of institutional capital into the sector.
US markets are expected to open cautiously after hawkish European policymakers contrast with another interest rate cut in China. The People's Bank of China cut two benchmark lending rates, its one-year and five-year loan prime rates, by 10 basis points each. The rate moves stand in contrast to ongoing Western credit tightening and come alongside some thaw in Beijing's relations with Washington. Meanwhile, global bond market nerves were jarred again by what's set to be another hawkish week for central bank watchers in Europe. The big US data input this week is from the housing sector, where signs of some recovery are reinforcing 'soft landing' hopes for the wider economy. FedEx releases its latest earnings update in an important gauge of the health of both domestic and international logistics and supply chains.
For the first time since 2012, the year-over-year prices of houses in the US have decreased, making it cheaper to buy a house now than at the same time last year. Home sales have increased across the country, with the biggest month-to-month jump since July 2020. Mortgage rates have fallen to under 7%, encouraging buyers to come back in. Realtors recommend buyers move quickly while prices are lower, but sellers may not keep prices low for long.