Welcome to the FIA News & Insights, a one-stop resource that includes insights from senior investment professionals on timely market events, their views on the economy and their respective markets. Find updates on the latest media information on Frost Investment Advisors, LLC and the most recent reprints, as well as, archival information for your reference.
Interest Rates Hikes are Biting Housing
Recent stats published by Redfin show that home purchase cancelations rose to 16.1% in July, approaching the peak lockdown levels of March 2020. Single family home starts and permits have both fallen off significantly over the past few months, as has the National Association of Home Builders index. Multi-family housing starts and new permits appear to be holding up fairly well, but this is a poor leading indicator when compared historically against single-family units. Mortgage applications also continued to decline, tracking with housing affordability which has continued to plummet. Mortgage rates have come down from June’s recent high of 5.98%, but are still the highest they’ve been since 2008.
Get the latest posts straight to your inbox