Mortgage rates hit 7.17%, the highest in decades. This volatility is making it difficult for buyers and sellers to navigate the market, as rates can significantly impact monthly mortgage payments and affordability. Some buyers are finding ways to adjust to higher rates, but many sales are expected to shift towards the end of May and early June when sellers typically receive better prices.
Due to extreme weather and climate disasters from 2018 to 2022, the U.S. incurred over $617 billion in economic losses. These events have a significant financial impact, affecting Americans' housing, insurance premiums, health-care expenses, retirement savings, and career prospects. As temperatures rise, economic costs are projected to increase, making it important to mitigate climate change for both environmental and financial well-being.
Shelter costs continue to fuel inflation, particularly due to landlords slowly raising rents on existing tenants. The shortage of housing, especially single-family homes, has kept supply low while demand remains high. As a result, experts predict that shelter inflation will remain elevated, contributing to overall inflation.
Tomorrow's Consumer Price Index report will reveal inflation levels, influencing the Federal Reserve's decision on interest rates. If inflation is high, markets may decline. A stable core CPI suggests inflation is under control, potentially boosting markets. Rate cuts are expected, but strong earnings and coordinated central bank actions could also affect the market. The report will provide insight into inflation's trajectory and the Fed's potential future actions.
The US has a record high number of cities where the average home price is over $1 million. This is driven by low housing supply and strong demand, leading homeowners to hold on to their properties. Florida has the most expensive homes, with the most expensive listing currently at $295 million. Despite the surge in million-dollar cities, some areas, particularly in Texas and Florida, have lost their status due to higher interest rates encouraging more homeowners to sell.
Rent prices in March rose slightly due to seasonal patterns and increased demand during warmer months. However, some markets, like those in the Sun Belt and inner mountain areas, including Arizona, are experiencing rent decreases due to increased supply. While prices have increased overall, they remain lower than in 2021 and 2022 due to a return to seasonal patterns and factors like supply and demand. Markets in the Midwest and Northeast continue to see high rent prices due to undersupply.
