The Fed Chair, Jerome Powell, appeared before Congress this week, for his first time. Powell’s positive economic views may be a sign that interest rates might be increased.
January showed increase in Consumer prices , and inflation had it’s largest gain in a year. Inflation causes interest rates to rise, affecting home loan rates.
The labor market continues to show strength as well. Filings for unemployment benefits fell last week to the lowest level in almost five decades.
The last Case-Shiller report showed that buyer demand is still strong and home prices increased by 6.4% compared to last year.
In January pending home sales were down 4.7%, possibly due to lower inventory, a raise in interest rates , and weather conditions. However buyer activity was very active. So expect home prices to continue to gain.
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