![]() ![]() “Many sellers are recognizing the shift in market conditions and are responding by cutting their asking prices,” said George Ratiu, manager of economic research at. With borrowing costs expected to continue rising in the next few months, it is becoming increasingly clear that home prices need to decline to bring balance back to housing markets. As mortgage rates rise and home prices remain high, home sales are slowing. There is a silver lining for those looking to buy. But comments from Federal Reserve Chairman Jerome Powell and recent economic data have pulled investors’ attention back to the central bank’s fight against inflation, pushing rates higher. Rates had fallen in July and early August as recession fears took hold. Stubbornly high inflation is responsible for pushing rates up, noted Sam Khater, Freddie Mac’s chief economist. High borrowing costs and slim inventory levels continue to weigh on Americans looking for affordable housing, reports my colleague Anna Bahney. Mortgage rates in the US jumped past 6% this week, reaching their highest level since the fall of 2008. US mortgage rates jump to highest level in 14 years Those shocks will continue to weigh on GDP and fiscal performance. A new report by S&P Global Ratings estimates that war-related global energy and food shocks will last through at least 2024. Global commodity flows, including critical supplies of fossil fuels, food, and fertilizer continue to be hampered regardless of which side is winning the fight. Even if the conflict continues to swing in Ukraine’s favor, Europe is unlikely to dodge a energy crisis-induced recession this winter brought on by the invasion. ![]() Markets have been heartened by Ukraine’s advances, but the outcome of the war is far from certain. That’s the largest drop for a quarter since the second quarter of 2020 (when Covid-19 sent the United States into recession).Ĭharles Schwab analysts are forecasting weaker earnings growth through 2022 compared to last year.ģ. ![]() Third quarter earnings-per-share estimates have slipped more than 5.5% since the end of June, according to FactSet data. ![]()
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