US consumer sentiment improved in August for the first time in five months as slower inflation and prospects for Federal Reserve interest-rate cuts helped lift expectations about personal finances.The final August sentiment index rose to 67.9, from 66.4 in July, according to the University of Michigan. The preliminary reading was 67.8.Consumers expect prices will climb at an annual rate of 2.8% over the next year, down from the 2.9% exp
The U.S. economy grew faster than initially thought in the second quarter amid strong consumer spending, while corporate profits rebounded, which should help to sustain the expansion.Gross domestic product increased at a 3.0% annualized rate last quarter, the Commerce Department's Bureau of Economic Analysis said in its second estimate of second-quarter GDP on Thursday. That was an upward revision from the 2.8% rate reported last month.The econom
The Federal Reserve signaled late last week that it will likely cut its benchmark interest rate in September, which has already helped push mortgage rates lower, Freddie Mac says.The 30-year fixed-rate mortgage averaged 6.35% this week, and some economists believe rates will continue to fall further over the upcoming weeks. Late last week, Federal Reserve Chair Jerome Powell said the “time has come for policy to adjust” and said an interest r
The Mortgage Bankers Association’s refinancing index jumped 34.5% to a more than two-year high of 889.3. Mortgage applications to purchase a home climbed 2.8% in the week ended Aug. 9, the largest advance since the first week of June.The contract rate on a 30-year fixed mortgage eased 1 basis point to 6.54%, the MBA data showed Wednesday. The rate on a 15-year fixed mortgage dropped 7 basis points to 5.96%, the lowest since May of last year.The
For the first time since 2020, the median U.S. monthly mortgage payment has declined. During the four weeks ending August 18, the $2,587 figure reached its lowest level since February and was down 0.1% from a year ago, according to Redfin.The downward trend is likely due to falling mortgage rates, which are sitting at a 15-month low of just below 6.5%, down from a peak of 7.2% in May. Although home prices remain near record highs, up 3.6% year-ov
Some would-be home buyers are waiting for borrowing costs to drop even lower. Is that a wise strategy?Mortgage rates have remained in the mid-6% range in recent weeks—the 30-year fixed-rate loan was at a 6.46% average this week, according to Freddie Mac. But some aspiring home buyers may still be waiting for even lower rates before they make a move, hoping to get a better deal on borrowing costs, even though rates are dramatically lower than th
Buyers are finally getting more housing options to choose from. Read more from NAR’s latest housing report.Home affordability conditions are improving slightly, which helped to fuel more real estate transactions in July. Existing-home sales, which account for completed transactions for single-family homes, townhomes, condominiums and co-ops, saw their first uptick in about four months, rising 1.3% in July compared to June, NAR’s latest housin
Affordable Housing Challenges Persist in Austin Despite Rental DecreaseDespite a recent decrease in rent prices in the Austin area, many residents continue to struggle with finding affordable housing options. The story of Leigh Vladyka, an art teacher at an Austin public school, highlights the ongoing difficulties faced by individuals trying to make ends meet in a city where housing costs are rising faster than incomes.Leigh Vladyka's monthly ren
The latest Realtor.com Rental Report reveals a significant shift in the US housing market, as renting a starter home has become more financially advantageous than buying in all of the 50 largest metropolitan areas. This trend, observed since February, is driven by elevated mortgage rates, high home prices, and a decline in rents. However, in July, a milestone was reached in which renting became more affordable than buying in all major metros, a c
Inflation rose as expected in July, driven by higher housing-related costs, according to a Labor Department report Wednesday that is likely to keep an interest rate cut on the table in September.The consumer price index, a broad-based measure of prices for goods and services, increased 0.2% for the month, putting the 12-month inflation rate at 2.9%. Economists surveyed by Dow Jones had been looking for respective readings of 0.2% and 3%
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