Summary:
- Pricing remains strong, inventory remains low
- Home Equity is the biggest contributor to Net Worth
- The Economic Symposium is starting and is an important meeting
Fiction…
The real estate market is crashing.
Facts…
1.) The national median home price rose by 5.9% last month to $439,400, which is up a little over 8% year over year. While we are seeing an activity slow down in housing, pricing is still quite strong. (MBS Hwy 08/23/2022)
An article by Kiplinger laid out just how important home ownership is to your net worth. Net worth is defined as your assets – liabilities. Below are the net worth tiers:
To be in the top 1% in the US — your net worth is $10.8M
- Top 2% —- $2.5M
- Top 5% —- $1M
- Top 10% — $.8M
Top 50% —$.5M
3.) Thursday 8/25 kicked off the Jackson Hole Economic Symposium. Despite elevated inflation and aggressive Fed action, recent economic data highlights the US economy’s continued resilience – consumer spending remains strong and unemployment remains low. As a result, the Fed reiterated its intention to continue raising interest rates and keep them elevated until inflation is fully under control. Prior to the Fed’s remarks, many had believed that the Fed might start cutting rates this Spring, but its staunch commitment to fighting inflation caused mortgage rates to rise. However, there’s reason to be optimistic. Two measures of inflation (CPI and PCE) both showed declines since June. While we are still far from the Fed’s inflation target, we are at least heading in the riht direction.
Inspiration…
“Stop trying to calm the storm. Calm yourself, the storm will pass” – Buddhist quote
Want to know more? Don’t hesitate to reach out.
