Economy

March existing home sales plummeted to their slowest pace since 2009 due to high rates, rising prices, and economic uncertainty, casting doubt on the spring housing market’s strength.

The analysis highlights how climate-related disasters have led to higher premiums nationwide, disproportionately impacting high-risk ZIP Codes, straining insurers, and increasing policy non-renewals, ultimately signaling a growing challenge in affordability and availability of coverage for American homeowners.

Despite expectations of a surge in homebuying activity, the market has remained relatively stagnant. Several factors contribute to this muted response, including economic uncertainty, rising home prices, and the lingering lock-in effect. .

Soaring home prices and high mortgage rates keep the brakes on homeownership dreams in 2024. A potential Fed rate cut offers limited hope, as locked-in sellers restrict inventory growth. The housing market’s future depends on the Fed, economic data, and inventory levels, with a quick and significant affordability improvement unlikely.

Explore the recent trends in the U.S. housing market, focusing on the Federal Housing Finance Agency House Price Index (HPI). Examine the factors driving the continued rise in home prices despite elevated mortgage rates, including the imbalance between supply and demand.

A higher-than-expected unemployment rate of 4.3% for July has ignited concerns about a potential recession. This figure triggered the Sahm rule, a metric developed by former Federal Reserve economist Claudia Sahm to signal the early stages of an economic downturn.