With 2022 in its final two months, the housing market will be watching rates; investors will be watching the financial markets while everyday Americans will be longing for consumer staples like food and shelter prices to decline. The U.S. has seen inflation rates rise to 40-year highs and heating costs this season will be way above last year’s levels.
The cost to buy a home has surged in 2022, due in part to borrowing costs more than doubling since last year. The increase has priced many buyers out of contention and they are dealing with near-record high rent prices.
Given the slowdown in the U.S. economy and with aggressive rate hikes, the U.S. stock market fell into bear market territory wiping out large percentage gains in 401Ks that are now 301Ks.
In the recent inflation reading Consumer Price Index, food and shelter have risen by 11% and 6.6% respectively. These two staples are absolutely necessary for our everyday lives.
And finally, what will the holiday shopping season bring? Are consumers almost tapped out? With the season almost upon us, these are the questions that retailers will start asking. Reports show that retailers have large inventories so look for some great bargains. Consumer spending makes up two-thirds of the U.S. economy and if spending slows further, the economy will suffer.
Source: Mortgage Market Guide
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