Daily Archives: May 8, 2024

Will Housing Inflation Keep Interest Rates Higher For Longer?

Housing is among the most interest-rate sensitive sectors of the economy. It’s also one of the most cyclical and crucial inputs for the business cycle. On that basis, one could reasonably expect that the sharp runup in interest rates over the past two years would have crushed the trend in housing prices. For a while that was the effect, but the dramatic slide in the year-over-year change in US house prices is accelerating again. The reflation is moderate so far, at least compared with 2021-2022. But it’s notable that housing prices are once more looking resilient after the Federal Reserve’s most aggressive tightening policy in decades and before rate cuts have arrived.

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Macro Briefing: 8 May 2024

* US economic growth will continue to weaken until Fed cuts rates: Morningstar
* Rents expected to be last hurdle in taming global inflation
* Fed may need to hold rates steady in 2024, says Minneapolis Fed President
* US consumer credit growth slowed in March
* Federal subsidies for semi firms to fuel industry growth, report projects…
* Semiconductor ETF (SMH) trades near record high:

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