Core Insights - Experts express concerns that tariff policies may lead to an economic recession, which could reduce homebuyer demand and lower home values, although major job hubs might be less affected [1][2] - The U.S. housing market is experiencing a gradual normalization of inventory, which may stabilize or reduce home prices, despite high mortgage rates keeping many homeowners from selling [3][4] Housing Market Trends - In February, housing inventory increased by 5.1% month-over-month and 17% year-over-year, indicating a growing supply that could help stabilize home prices [3] - The median home price in the U.S. for Q2 2025 was $410,800, a decrease of $12,300 from the previous quarter, with expectations from major real estate organizations that home price growth will slow in 2025 [4] - The S&P CoreLogic Case-Shiller Index reported a year-over-year increase of 4.1% in January, followed by a 3.8% annual increase in existing home costs reported by the NAR for February [4] Economic Considerations - Concerns about a potential recession are rising, with a Deutsche Bank survey indicating a 43% probability of a U.S. recession occurring between now and June 2026 [10] - Mortgage rates have remained stable or decreased since January, with the Federal Reserve maintaining an overnight interest rate of 4.00% to 4.25% as of September 8 [2] Home Equity and Investment Opportunities - As of Q3 2024, the average U.S. homeowner had approximately $311,000 in home equity, suggesting potential for leveraging this equity through options like home equity lines of credit (HELOC) [5][6] - Homeshares is providing a new avenue for accredited investors to gain exposure to the $36 trillion home equity market without the burdens of property management, allowing investments starting at $25,000 [11][12] - Homeshares offers risk-adjusted target returns ranging from 14% to 17%, presenting a low-maintenance alternative to traditional property ownership [13]

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. A recent post on Reddit sparked a fiery debate about housing affordability in the U.S., pointing to international data showing that the U.S. is still one of the most affordable countries in the world to buy a home. Global Housing Trends “People act like housing is so unaffordable here,” wrote the original poster, “but the data shows that the USA has a lower housing price to income ratio than any western c ...

.@BOXABL is truly bringing innovation to the absurdly antiquated housing industry.Affordability, modern design, setup within hours.. this is the way forward!https://t.co/Ax60Zk7sV6 ...

LIVE Government Shutdown: Bessent Says GDP Will Be Hit; Trump Meeting to Decide on Job Cuts Last Updated: 1 hour ago How a Shutdown Could Slow the Housing Market By Shaina Mishkin (Photo by Joe Raedle/Getty Images) Home sales won't grind to a halt during a government shutdown. But sellers, buyers, and the housing industry will still be affected, particularly so if the shutdown drags out, Selma Hepp, the chief economist at real estate data and analytics firm Cotality, writes. "Overall, the shutdown introduce ...

Group 1 - Pending home sales in August rose 4% from July and were 3.8% higher year-over-year, indicating strong market performance [1] - Mortgage rates in August were slightly lower than in July, contributing to the increase in signed contracts for home sales [2] - A survey of realtors indicated that 19% expect an increase in buyer traffic over the next three months, up from 16% the previous month [3] Group 2 - Inventory in August fell for the first time since the beginning of the year, suggesting a tightening market [4] - Sales increased in three out of four regions, with the Midwest showing the strongest performance due to lower home prices [4]

Core Insights - Home contract signings increased by 4% in August, surpassing economists' expectations of a 0.4% gain, indicating a potential recovery in the housing market due to lower mortgage rates [1][5] - The Pending Home Sales Index reached 74.7, with a year-over-year increase of 3.8%, suggesting a gradual improvement in buyer activity [1][3] - The Midwest region experienced the highest growth in contract signings, with an 8.7% increase since July and a 6.7% rise over the past year, attributed to its relative affordability [6] Mortgage Rates - The average 30-year fixed mortgage rate has decreased from approximately 6.7% to around 6.3%, which is believed to be facilitating more homebuyers entering the market [5][6] - Lower mortgage rates are seen as a key factor enabling more homebuyers to sign contracts, according to the National Association of Realtors Chief Economist [5] Market Conditions - The housing market is currently in its third consecutive year of decline, with home sales projected to reach a 30-year low, although there is optimism that falling mortgage rates may stimulate activity in the fall [3][5] - Contract signings showed varied performance across regions, with increases in the Midwest, South, and Western US, while the Northeast saw a decline [1][3]

By Niket Nishant and Sukriti Gupta (Reuters) -The S&P 500 and the Nasdaq indexes rose on Monday, rebounding from last week's declines, as investors shrugged off fears of a looming government shutdown and hawkish remarks from a Federal Reserve official. The surge underscores a strong risk-on sentiment among investors, whose expectations of a dovish Fed have helped equities sustain lofty valuations, even amid persistent inflation concerns and labor market uncertainties. "Dip buyers keep being rewarded i ...

Core Insights - Soaring home prices and elevated mortgage rates are significant issues in America, with the recent Federal Reserve rate cut not leading to expected decreases in mortgage rates [1][2] - Long-term borrowing costs are influenced more by concerns about inflation and federal deficits than by Federal Reserve policy [2][3] - The average rate on a 30-year fixed mortgage has increased from below 3% to over 6%, with historical context indicating that higher rates have been common in the past [3] Housing Market Dynamics - The typical U.S. household would need an annual income of approximately $118,530 to afford a median-priced home of $402,500, which is over 50% higher than the current median household income of about $77,700 [4] - Given the current economic conditions, buying smaller homes may become a necessity for many households [4][5]

One of the most common retirement tips is to sell the big house, move into something smaller and pocket the savings. But does it actually work out that way? To explore the question, I asked ChatGPT whether downsizing truly saves money in retirement. My goal wasn’t to see if Artificial Intelligence (AI) could deliver perfect financial advice. Instead, I used its broad guidance as a roadmap for what to research, then checked those points against recent surveys, housing reports and financial data to give you ...

Economic Overview - The current economy is divided into two segments: a strong AI-driven sector and a weaker consumer segment that requires interest rate cuts for improvement [1][2] - The AI economy is largely unaffected by interest rates, with companies in this sector often relying on equity sales to well-funded partners rather than traditional financing [2] AI Sector Developments - Major events are driving the AI-centric economy, such as CoreWeave's $6.5 billion investment with OpenAI, raising their total contracts to $22.4 billion [3] - Meta is investing $10 billion in a new data center, which poses potential risks to the local energy grid due to its high energy demands [3] Consumer Sector Challenges - Consumer-oriented companies are struggling to meet earnings estimates, as evidenced by disappointing reports from CarMax and KB Home [4] - Starbucks announced a 1% reduction in store count and plans to lay off approximately 900 non-retail employees, indicating challenges in the retail sector [4] Economic Foundations - The automotive, housing, and retail sectors are considered foundational to the economy, yet they are not performing well despite a strong GDP growth of 3.8% [5][6] - The gains in GDP are largely attributed to the performance of AI-related companies, highlighting a disconnect between tech advancements and everyday workforce experiences [6]