September 26, 2023 | Driving It Home with ABoR's Housing Economist

In its September meeting, the Federal Reserve opted to pause rate hikes, but signaled that it will likely raise rates by 25 basis points in either its November or December meeting. Moreover, the Fed indicated that the fed funds rate will likely remain higher for longer - news which continues to be digested by financial markets. (On Wednesday, the day the rate decision was announced, the S&P 500 was down 1% and the yield on 2-year Treasuries, which reflect interest rate expectations, rose to 17-year highs. Last week, the mortgage rate averaged 7.19%, only marginally higher than the week prior. However, the mortgage rate will likely climb over the near-term in coincidence with the rise in the 10-year Treasury yield, which rose last week in response to the messaging from the Fed (i.e., higher for longer) and lower than expected jobless claims. *Links mentioned in this episode:* Market Shift Conversations | October 10 https://www.abor.com/event-type/market-shift-conversations Download the Audio Transcript + Episode Summary: https://www.abor.com/content/uploads/2023/09/DIH-9-26-23.pdf Truth About Austin's Missing Housing Report: https://www.abor.com/thetruth Buy Vs. Rent Index: https://www.abor.com/buyrentindex One-Page Customizable Buy Vs. Rent Index Summary: https://www.abor.com/customizables Connect with us on socials: https://www.abor.com/socials Connect with Dr. Clare Losey on LinkedIn: https://www.linkedin.com/in/clare-losey