May 13, 2022
- the The Realtor.com® Economics Team weekly video update gives you the relevant economic and real estate information you need to navigate the housing market as a buyer, seller or industry professional.
- This week, Chief Economist Danielle Hale discusses the latest inflation reading, what the Fed had to say about it, and consumer reaction.
- Danielle notes that this week’s mortgage rates climbed againas discussed by colleague Joel Bernierbut cites reasons to expect some stability ahead.
- Rising mortgage rates, homes that move quickly and record asking prices in April to have impact on confidence in buying a houseas a colleague Sabrina Speianu blankets. Housing data for the first week of Mayhowever, highlight a new trend: the growth in the number of homes available for sale compared to a year ago.
- Finally, Danielle highlights the conclusions of 2 in-depth research that answers questions about how homebuyers are coping with tough market conditions. In the first, colleague Hannah Jones examined recent installment trendsand in the second, colleague Joel Bernier Comments what home shopping trends say about migration.
- Find the details with Realtor.com® accommodation data to download to realtor.com/research. And follow us on Twitter: @rdc_economicsfor real-time updates.
- I am Danielle Hale, Chief Economist for Realtor.com® and here’s what you need to know.
- Inflation data shows prices continuing to rise near long-term highs. There was a slight improvement in overall price growth as some items including energy, used cars and trucks, and apparel were down in the month, but compared to a year ago, the prices were raised.
- Several Fed speakers addressed the public to reinforce the indications given at last week’s meeting that the Fed will quickly move to a neutral rate in the short term. W should be there by the fall at the current pace of rate hikes, which should continue.
- In a mixed reaction to the Fed’s inflation-fighting pledge, consumers’ expectations for inflation over the next year have fallen even as they raised their view of inflation persistence. over the next 3 years.
- The same time, weekly mortgage rates continue to climbrising to a level not seen since 2009. Improving inflation data and a widening gap between 10-year yields and mortgage rates could mean some stability ahead, which would be a welcome relief for homebuyers .
- In reality, Home buying confidence plummeted in April to its lowest level since 2020, while our housing trends monthly report showed that asking prices for typical homes hit a new all-time high and homes stayed on the market for less time than ever.
- Fast forward to the first week of May, and while these trends are still in play, we saw the number of homes for sale increase for the first time since 2019. The increase rounded to zero in our weekly databut constitutes an important first step, ending a series of declines of almost 3 years.
- Also this week, we published 2 more in-depth research that answers questions about how homebuyers are coping with tough market conditions. In the first, we found that deposits have increased while repeat buyers have leveraged equity to cushion the effects of rising home prices and mortgage rates, creating unique challenges for first-time buyers who lack equity. In the second piece, we see that sometimes facing the market means finding a new, more affordable neighborhood to settle in. the the big winners attracting interest from outside buyers while not losing local residents to other housing markets were overwhelmingly in the South and Midwest.
- You will find details and our accommodation data to download to realtor.com/research. And follow us on Twitter for real-time updates.
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