The soaring market that threatens to derail the economic recovery

  • 📰 politico
  • ⏱ Reading Time:
  • 80 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 35%
  • Publisher: 59%

Belgique Nouvelles Nouvelles

Belgique Dernières Nouvelles,Belgique Actualités

With home prices already up about 15 percent from last year and rents soaring at nearly triple their normal rate, there’s growing concern that housing costs could soon begin to nudge inflation higher

Wall Street investors have bought into the Federal Reserve’s assurances that higher inflation won’t last, but a looming trend will test their composure over the coming months: soaring home and rental costs.

Officials at the Fed and in President Joe Biden's administration say they expect the supply-chain bottlenecks that have stoked inflation to begin to ease later this year as the economy fully reopens. But housing-driven inflation could also start to rise as higher rents slowly cycle into the official tracking of price increases, a process that may have been delayed because leases are traditionally annual.

At the same time, the Fed’s easy-money response to last year’s economic crisis drove mortgage rates to rock-bottom lows, just as a glut of young adults sought to ditch cramped urban quarters for spacier homes in the suburbs. Those high prices can prevent would-be homebuyers from being able to afford a new house, leading to an even more dramatic increase in rents, which were unusually low for much of the pandemic.

“This disconnect [between supply and demand] has been under way for a long time,” said Doug Duncan, chief economist at Fannie Mae. “We’re finally seeing it flow into some of the inflation numbers.” Even as the country gets beyond the health crisis, housing economists warn that high costs due to that imbalance will persist, thanks to demographic pressures. For one thing, the biggest share of millennials isn’t expected to reach peak home-buying age for another couple of years.

But the extent to which owners’ equivalent rent will actually spike is hard to predict, as home prices themselves are much more volatile than so-called imputed rent, so some of the lurking threat might never fully materialize in the inflation data.

 

Merci pour votre commentaire. Votre commentaire sera publié après examen.

Duh 🙄 It’s what happens when govt throws around printed money.

Don't worry. Biden & his people will rework the numbers so there will be no inflation. It will all be a made up Republican plot to discredit him. The media will agree. It's the Democrats way.

Biden Admin: 'No inflation here'

O Senhor está clamando por Arrependimento... o que esta geração de cristãos modernos não entendeu ⁉️ Jesus está revelando Deus pai, a esta GERAÇÃO 🔥

Who can afford to buy a home now?

Politico is quickly turning into The Hill and that's not a good thing.

This won’t age well.

이 땅의 것은 영원하지 않습니다. 영생하는 것을 먹어야 합니다. 들어보세요. ChoiceOfEternity

Housing prices.

Could…lol

🧃😂Mr BitBoy $hitcoinery Bitcoin

Nous avons résumé cette actualité afin que vous puissiez la lire rapidement. Si l'actualité vous intéresse, vous pouvez lire le texte intégral ici. Lire la suite:

 /  🏆 381. in BE

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Soaring warehouse demand boosts commercial real estate market as office vacancies mountWhile offices sit vacant following the pandemic, warehouse space has never been so hot as e-retailers and logistics companies scour the country for facilities. For all those who are new to this working from home Bitcoin trading options Here's a little tip: Get a trusted Bitcoin expert and stick to her Lucille610406 Invest and play at similar times each day. Because : In times of chaos, your investment is your anchor to success Prologis stock research still check quotes 2010-2020... 2012 I bought 6 stocks Cardinal Health, Yum Brands, Nike, Kimco Realty, Duke Realty, Welltower... bought Welltower than Prologis live in ohio famous healthcare reit easy to follow Welltower Dad own Prologis in his IRA but bonds and I owned fixed income preferred shares but security was called
La source: CNBC - 🏆 12. / 72 Lire la suite »