In this video, we will explore how the Fed’s battle with inflation has affected the housing market and overall affordability in the U.S.
Key Takeaways
- Headline inflation growth has slowed, but a few sticky contributors, namely shelter, have remained stubbornly high.
- The average 30-year fixed rate mortgage is just under 7%, but most homeowners hold mortgages at a rate lower than the average rate.
- Home prices have risen significantly over the last four years. For hopeful homeowners, this can raise red flags that they are buying at the wrong time. Current owners are likely to sit back and relax, as it likely means their own property’s value has risen.
- With mortgage rates and home prices up, it’s not surprising that affordability is down by nearly half compared to the pre-COVID market.
The opinions and analyses expressed in this presentation are based on Curi RMB Capital, LLC’s (“Curi RMB Capital”) research and professional experience are expressed as of the date of our mailing of this presentation. Certain information expressed represents an assessment at a specific point in time and is not intended to be a forecast or guarantee of future results, nor is it intended to speak to any future time periods. Curi RMB Capital makes no warranty or representation, express or implied, nor does Curi RMB Capital accept any liability, with respect to the information and data set forth herein, and Curi RMB Capital specifically disclaims any duty to update any of the information and data contained in this presentation. The information and data in this presentation does not constitute legal, tax, accounting, investment or other professional advice. An investment cannot be made directly in an index. The index data assumes reinvestment of all income and does not bear fees, taxes, or transaction costs.
