Freddie Mac reported on Thursday that its weekly average 30-year fixed mortgage rate rose to 4.47%, the highest since January 2014. Unfortunately, home prices have risen since January 2014 as well.
Liquidity moves markets!Follow the money. Find the profits!
And home prices are growing at a rate of three times that of average hourly earnings for most workers.
But what about entry-level housing? John Burns Consulting has a nice study on entry-level housing rising at a national average rate of 9%.
And as Selma Hepp reported, there were 30% fewer homes below $1M available for sale in Q1 in LA and greater Burbank/Glendale/Sherman Oaks areas inventory below $1M dropped by almost 50% (almost 1,000 fewer homes!)
Of course, Washington DC is the slowest growing MSA in the nation (and it STILL feels expensive!).
What is tragic about rising home prices, particularly for entry level housing? The tragedy is that the Federal government devotes (or distorts) significant resources towards “affordable housing” that isn’t even affordable! Plus we have the Federal Reserve’s low interest rate policies that have created asset bubbles and local counties that have restrictive land (zoning) laws that choke-off new supply.
Well, at least the San Francisco Bay area only rose by 14%!
Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. I may receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.