Marketbites: Plunging Home Sales
MARKET PERFORMANCE:
Portfolio Manager Commentary:
The S&P 500 fell for a fifth day as traders weighed the possibility of a recession, and the likelihood of a longer-than-expected hiking cycle from the Federal Reserve. Bond yields also fell, with the rate on the 10-year Treasury note at one point touching a low of 3.402%.
“The market’s kind of bobbing and weaving and finding its breath after the big rally off the October lows,” said Ryan Detrick, chief market strategist at the Carson Group. He expects markets to continue this trend until investors receive more clarity from the Fed’s December policy meeting and November’s consumer price index report. The central bank is widely expected to deliver a 50 basis point rate hike next week.
Chart of the Day:
Home sales have plunged over the past year. Buyers are facing the fastest-rising mortgage rates in decades forcing them to scrap their plans. Next year’s predictions for home prices are unusually varied, economists say. KPMG LLP, an audit and consulting firm, is calling for prices to fall 20% next year, and Goldman Sachs Group Inc. forecasts a 7.5% drop. The National Association of Realtors, meanwhile, is forecasting a 1.2% increase in existing-home prices, and the Mortgage Bankers Association sees prices up 0.7% next year. How long the slump in sales lasts depends in part on how long it takes the Fed to get control of inflation.
Source: WSJ
Invest With Us
Download and invest with us in the Avidus app! Avidus is your "in" to directly owning a portfolio of remarkable companies. Leave Wall Street & Robo-advisors behind!
