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Inflation and Rents Are Both On the Rise {Market Report} March 26th

Inflation and Rents Are Both On the Rise {Market Report} March 26th
March 26, 2018 abryant

 

 

Hello, Monday. May I ask you a question? Why are you always back so quickly? Don’t you have a hobby?

My restaurant in the alps has been voted the best in the world. Have I set the bar too high for others?

They gave me the questions which I don’t know. So, I wrote answers which they don’t know.

If I’m driving you crazy just remember to put on your seat belt.

They say never judge a book by its cover, but they also said a picture is worth a thousand words.

 

Now The Market Report . . .

 

As expected, the Fed raised policy rates at this week’s meeting. While they alluded to only two more hikes this year, rising inflation could necessitate more.

The institution of tariffs, most recently against China, can contribute to rising inflation by limiting free markets. Inflation fuels rising interest and mortgage rates.

After rising quickly early in the year, mortgage rates have stabilized. Nonetheless, further increases are expected through the rest of the year.

 

Existing home sales were up 3% in February, despite a chronic shortage of inventory. That’s 1.1% higher than February 2017, showing strong demand.

Tight inventory, especially for homes in the lower price ranges, is the new normal. Housing inventory was down 8.1% from a year ago this time.

Along with interest rates, rents have been rising. A recent survey concluded that the largest 250 U.S. cities saw rents grow year over year by an average of 2.7%.

 

If you make something idiot proof, someone, somewhere will make a better idiot.

 

This week’s potential market moving reports are:

 

Monday, March 26th:           Dallas Fed Manufacturing Survey

Tuesday, March 27th:          S&P Corelogic Home Price Index, Consumer Confidence

Wednesday, March 28th:    MBA Mortgage Applications, Pending Home Sales

Thursday, March 29th:         First Time Jobless Claims, Consumer Sentiment

 

 

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