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US Economy and Real Estate New Flash (May-June 2024)

 

New Construction Thrives: While existing home sales struggle, the new construction sector is bucking the trend. Builders are reporting robust demand, particularly for single-family homes in areas with limited inventory and strong job markets, according to the National Association of Home Builders.
(Source: NAHB/Wells Fargo Housing Market Index, May 2024)

Debt Ceiling Drama Ends: After weeks of political wrangling, the US narrowly averted a debt default in early June as President Biden and House Speaker McCarthy reached a deal to suspend the debt limit until 2025. The agreement, however, failed to address long-term fiscal concerns, leaving many economists worried about future economic stability
(Source: The New York Times, June 2nd, 2024)

Mortgage Rates Soar, Sales Slump: The average 30-year fixed mortgage rate climbed to 7.09% in the week ending June 6, the highest level since November 2002. This surge has significantly dampened demand for existing homes, leading to a sharp decline in sales volumes.
(Source: Freddie Mac, June 6th, 2024)

Labor Market Tightens: : Despite the slowing economy, the labor market remains hot, with unemployment holding steady at 3.5% in May. While this is good news for workers, it could fuel wage growth and further complicate the Fed’s fight against inflation.
(Source: Bureau of Labor Statistics, June 7th, 2024)

Key Takeaways From the Fed´s Latest Interest Rate Decision: The Federal Reserve said on Wednesday 12th, it is keeping its benchmark lending rate at its current level for the seventh time in a row, while signaling fewer rate cuts than previously estimated.
(Source: CNN Business, June 12th, 2024)

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