In this video, Manager of Economic Research George Ratiu discusses the shifts taking place in the economy and how they are impacting the housing markets.
Mr. Ratiu covers the number of factory orders, which declined for the first time in 10 months, pointing out that the consumer is traveling and spending more, increasing gains in the services sector. He believes that companies remain concerned about high prices due to the unbridled inflation and labor shortages throughout the country. He also covers the increase cost of consumer credit, forcing families to borrow more to meet financial needs.
He covers the fact that the Federal Reserve is expected to increase rates at a faster rate this year, the fifth weekly jump in mortgage rates, when home prices were less than half what they are today.