The Federal Reserve’s inflation fight has been particularly brutal for anyone not already a U.S. homeowner before interest rates and mortgage rates rose to 15 year highs this year.
“Generally, climbing interest rates curb demand and cause housing prices to fall,” Glenmede’s investment strategy team, wrote in a Tuesday client note, but not this time. Also, while homes prices have come off their pre-pandemic highs, they still were fetching $416,000 in the second quarter, based on median sales prices, above $358,700 in the fourth quarter of 2020, according to U.S. Census and HUD data.
Meanwhile, shares of home-vacation rental platform Airbnb. Inc. ABNB, +8.07% were up 8.2% on Tuesday, after the long Labor Day weekend, and 67.9% higher on the year so far, according to FactSet.