Empty House 🏡

Table of Contents

Empty House

We’ve seen the housing market start to cool off, but it finally feels as if it’s returning to Earth. Conditions for the last 2 years have been perfect for homeowners across America, but a big part of that has to do with inflation, which is once again affecting a key part of our economy. We’ve discussed the whole chain of events that has caused this, but Jerome Powell and the Federal Reserve’s decision to increase interest rates has reversed this.

Data shows that last week, mortgage applications fell to its lowest level in more than 2 decades, with high interest rates dissuading people from refinancing their loans. Additionally, existing home sales slowed to pandemic levels due to higher borrowing costs involved with loans nowadays. This mortgage issue, along with a scarcity of homes up for sale, is causing a shift in inventory of houses that economists aren’t too unhappy about as it’s reverting to the mean. According to analyst Logan Mohtashami, this will help control pricing power and keep prices in check, and the inventory argument is solid as levels have risen by 10 percent in the last 2 months. This economic trend should be promising for homeowners looking to enter the market, a group of people we’ve talked about a lot when it comes to real estate. It’s a pure fact that minorities and millennials have been disproportionately affected by the housing market in the last 2 years, and rising mortgage rates as a result of higher interest rates are a short-term pain for a long-term blessing. Unfortunately, inventory is still far behind from pre-pandemic levels, and it’ll definitely take more than a year for things to normalize if rate increases are scheduled to go the way they are.

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:
More Posts
The Crude Oil Bust 🛢

Surging global crude oil prices, driven by factors like OPEC+ production cuts have pushed U.S. West Texas Intermediate futures to over $95 per barrel.

Metaverse Returns 🤖

Meta, led by CEO Mark Zuckerberg, is intensifying its commitment to innovation in the Metaverse through the introduction of the Quest 3 VR headset.

Higher Rate Households 📈

The recent Fed decision to pause rates has left the federal funds rate at its highest level since 2000.

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.