October 17, 2023 | Driving It Home with ABoR's Housing Economist

In this episode, Emily and Dr. Losey dive into the economy's current status, particularly the inflation rates and their repercussions on the housing market. Although inflation rates have moderated since their June 2022 peak, September's Consumer Price Index (CPI) still recorded a 3.7% year-over-year increase, a situation that complicates the Federal Reserve's decision on interest rates. Amid factors like a robust labor market and geopolitical concerns, predictions now suggest the Federal Reserve may not hike rates in the forthcoming November and December meetings. Both hosts underscored the Federal Reserve's pivotal role in offering clear directives, which industries have come to rely upon for stability. Transitioning to housing trends, Dr. Losey mentioned a noticeable slowdown in sales and a surge in property withdrawals, signaling both sellers' reluctance and prospective buyers' limited choices due to climbing rates. Geopolitical tensions in the Middle East and doubts about the Fed's ability to handle the inflationary cycle are also significant concerns. The Fed faces challenges in trying to stabilize an economy with such contradictions. The housing market is being directly affected by these economic factors. Last week, there was a decline in sales by 14% in the MSA and 27% in Austin. Mortgage rates have reached 7.5%, causing uncertainty among potential buyers and leading to a 26% rise in property withdrawals from the market. The market might change if there were a higher supply of affordable homes, but the current shortage is exacerbating affordability issues. Links mentioned in this episode: September 2023 Market Statistics: https://www.abor.com/marketstatistics Download the Audio Transcript + Episode Summary: https://www.abor.com/content/uploads/... Buy vs. Rent Index: https://www.abor.com/buyrentindex Dr. Losey's Office Hours: October 23, 2023 | 2-4 p.m. | ABoR Headquarters Connect with us on socials: https://www.abor.com/socials Connect with Dr. Clare Losey on LinkedIn:   / clare-losey   Feedback? Email us at [email protected].