Driving It Home with ABoR's Housing Economist | September 26, 2023
Channel: Austin Board of REALTORS®
Date: 26/09/2023

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

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