December Existing Home Sales

Below is one of my favorite housing charts, courtesy of Calculated Risk. It gives some people fits, but the explanation is very simple: Home buying follows a very distinct annual cycle, relating to several factors, but mostly the calendar school year (September to June) and the weather. Parents shopping for a new home know it is… Read More The post December Existing Home Sales appeared first on The Big Picture.

How the Cost of Rent Is Keeping Inflation in Check

Rents are rising at the slowest pace in more than a year, a welcome development for consumers but another potential complication for Federal Reserve officials waiting for a pickup in inflation. A measure of what Americans are paying for rent was up 3.7% in October and again in November from a year earlier. Rent inflation dipped to that level in September 2016 but was last consistently that low in the opening months of 2016, according to Labor Department data. Major cities including New York, Houston and San Francisco have seen the slowdown in rental cost pressures after years of rapid gains. Rent inflation is still outpacing overall inflation, but the slowdown could ease what had already been limited price pressures from across the economy. That’s one more factor for Fed officials to consider as they weigh their next steps on interest rates. Inflation has continually undershot the central bank’s 2% target Continue reading "How the Cost of Rent Is Keeping Inflation in Check"

All Hail the Millenial Homebuyer !

Millennials Leave the Basement to Buy Homes This points to a rise in spending on furniture, appliances, electronics and cars that will lift earnings and power stocks. Bloomberg, November 10, 2017     A few years ago, I wrote “The economy will one day improve, and the millennials will move out of their parents’ basements. When that happens, expect… Read More The post All Hail the Millenial Homebuyer ! appeared first on The Big Picture.