The Federal Reserve began to be concerned about the housing market now

As the recession continues in the sector, it was operated More warning bells Because the activity in housing, such as residential and construction, often served as a Pioneering indicator of the public economy.

A minutes away from the FBI meetings did not include such concerns. But this changed during the July 29-30 gathering.

“Participants noted that the growth of economic activity slowed in the first half of the year, driven in a large part due to the growth of the slowdown consumption and the decline in residential investment,” said the minutes, which was issued on Wednesday.

Housing was certainly one of the many concerns raised by politicians. Others included the labor market, the impact of definitions on inflation, real income growth, high asset assessments, and decrease in crop prices.

But federal reserve officials were also specific to their concerns in the housing market, indicating that they have begun to pay more attention to the data.

“A few participants noticed the poor demand for housing, with the increase in homes for sale and the low prices of homes,” said minutes.

Housing not only appeared on the FBI radar, but also the policy makers were a potential danger to jobs, along with artificial intelligence technology.

“In addition to the risks caused by customs tariffs, the potential negative risks included the employees mentioned by the participants, a potential tightening of the financial conditions due to the high risk installments, the more fundamental deterioration in the housing market, and the risks that increasing the use of artificial intelligence in the workplace may reduce employment,” added minutes.

Housing market data

The fact that the housing market appears as a disturbance in the Federal Reserve means that it can also weigh more on price decisions, which affect mortgage rates.

In his speech in Jackson Hall on Friday, Chairman Jerome Powell Open the door to reduce the rate At the Central Bank meeting in September months after maintaining a more honest position, it destroys a Angry gathering in Wall Street And send the treasury for a 10 -year decrease.

But in the meantime, the new data indicates that the housing market remains stuck as the high borrowing costs have kept potential buyers on the margin.

The current homes sales increased in July, but were largely flat for most of the year, even with the high number of menus, indicating that the demand is weak. This is the suppression of home prices, with a decrease in the average price scale every month except for one month this year.

“Weekly data indicates that home prices may remain defeated in the coming months, near the apartment per year or are very modest,” said analysts at Citi Research on Thursday. “Low home prices is rare outside long distances or stagnation.”

In addition, building new homes for one family is still inactive, and data for July showed that construction permits have decreased in six out of seven months this year. In fact, the permits – an indication of volatile but a pioneer of future activity – to the lowest level since 2019, with the exception of the epidemic.

This was reflected in the Nahb Homebiilder confidence index, which fell in August to reflect a modest height earlier. It also showed that the share of home builders that offer sales incentives reached a rise after birth.

City said in a separate note on Tuesday: “Since the demand for housing remains weak with the high mortgage rates and the high prices of homes, we expect more softening in the housing activity this year,” City said in a separate note on Tuesday.

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