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Sales of new homes fell short of expectations in October as mortgage rates hovered near 8 percent amid wider stresses in the U.S. housing market.
New single‐family homes sales came in at a seasonally adjusted annual rate of 679,000, compared to a predicted 725,000, according to data released Monday by the Census Bureau and the Department of Housing and Urban Development (HUD).
The numbers for October were 5.6 percent lower than for September but 17.7 percent higher than last year. That’s off a recent high of more than 1 million homes sold in October of 2020.
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The median sales price for a new house was $409,300, and the average price was $487,000, the Census Bureau reported.
The numbers come as existing home sales dropped in September to their lowest pace since 2010, according to HUD data.
September sales of existing homes fell 2 percent to a seasonally adjusted 3.96 million units from 4 million in August, dropping by 15.4 percent on the year, HUD reported, citing National Association of Realtors (NAR) data.
“Month-to-month house prices have increased modestly in the last several months, but mortgage rates have trended up recently, and inventories of existing homes for sale are still lean,” the agency said.
Following more than a year of interest rate hikes by the Federal Reserve in response to elevated prices throughout the economy, mortgage rates touched 8 percent in October, the highest level in more than 20 years.
Mortgage rates are affected by the level of interest rates, which now stand at a range of 5.25 to 5.5 percent, but they more closely follow the yield on 10-year U.S. treasuries.
The rate for a 30-year fixed mortgage has eased slightly since last month to 7.73 percent, according to financial data company Bankrate.
Sky-high mortgages have contributed to lower affordability of housing in general.
The Case-Schiller national home price index is now at the highest level on record, its trend line having steepened dramatically since the onset of the pandemic in 2020.
Both the NAR’s homeownership affordability index and HUD’s rental affordability index are at their lowest levels in decades.
The Fed has held off on further rate hikes at its last two meetings as inflation has decelerated throughout the economy.
After peaking at around a 9 percent annual increase last June, the consumer price index (CPI) fell to a 3.2-percent increase in October.
But shelter inflation is still high. Despite peaking in March at an 8.2 percent annual increase, costs have come down only slightly and are still up 6.7 percent year-over-year.
While the pace of price increases has abated, the overall level of many individual prices in the economy is still much higher than it was before inflation took off in the wake of the pandemic.
Prices are about 20 percent higher overall than they were before the pandemic, according to calculations released Monday by Bloomberg Economics.
“Groceries are up 25 percent since January 2020. Same with electricity. Used-car prices have climbed 35 percent, auto insurance 33 percent and rents roughly 20 percent,” the financial data service found.
“The government data reports that show easing inflation are cold comfort, because they simply indicate prices are growing at a slower pace, not that they are returning to early 2020 levels,” it said.
Housing activists and tenants rights organizations are letting lawmakers know they’re displeased with the state of housing and their rental burdens.
Tenants groups, including the Homes Guarantee, the Louisville Tenants Union and Neighbor to Neighbor, met with Rep. Pramila Jayapal (D-Wash.) on Capitol Hill earlier this month to advocate that more stringent tenant protections be attached to federal financing for housing.
“It’s not right that I work hard every single day, living paycheck to paycheck to make corporate landlords like Starwood Capital and Barry [Sternlicht] even richer. It’s not right that the federal government is in business with the slumlords who would have us live in squalor while they brag about raising our rents,” Louisville Tenant Union member Elizabeth Olvera Perez said in a statement earlier this month.
“The rent is too damn high,” Jayapal wrote online Nov. 15. “It’s time to end the housing crisis and deliver for Americans.”
Amid much speculation that the Fed’s rate-setting committee is now done raising interest rates, the U.S. central bank is still officially predicting one more quarter-point rate hike this year, to max out at a range of 5.5 to 5.75 percent.
Whether or not the Fed makes good on that prediction, some investors are already betting on cuts, and that markets are pricing them in.
The Wall Street Journal reported Monday that interest-rate futures indicated 60-40 odds that “the Fed will lower rates by a quarter-of-a-percentage point by its May 2024 policy meeting.”
That’s up from 29 percent at the end of October, according to CME Group data, the Journal reported.
Business, News, Policy, Census Bureau, Department of Housing and Urban Development, Housing, housing market, housing prices, Pramila Jayapal Sales of new homes fell short of expectations in October as mortgage rates hovered near 8 percent amid wider stresses in the U.S. housing market. New single‐family homes sales came in at a seasonally adjusted annual rate of 679,000, compared to a predicted 725,000, according to data released Monday by the Census Bureau and the…
In the wake of Donald Trump’s recent election victory and his promise of “the largest deportation operation in American history,” several major U.S. cities are bracing for potentially seismic shifts in their economic and social landscapes. As the nation grapples with the implications of this proposed policy, urban centers that have long been havens for immigrant communities find themselves at the epicenter of a looming storm.
Los Angeles, often dubbed the “City of Angels,” stands to lose more than its celestial nickname suggests. As a primary gateway for immigrants, the city’s vibrant tapestry of cultures and its economic engine could face significant disruption. From the bustling streets of Koreatown to the sun-drenched orchards of the Central Valley, the absence of undocumented workers could leave gaping holes in the city’s workforce and cultural identity.
Across the country, New York City, with its iconic skyline and melting pot reputation, faces its own reckoning. The Big Apple’s 5.9 million immigrants, many of whom are undocumented, form the backbone of industries ranging from construction to healthcare. The potential exodus could transform neighborhoods like Jackson Heights and Flushing, altering the very essence of what makes New York a global city.In the Sunshine State, Miami’s tropical allure belies the turbulent times ahead. Home to 2.5 million immigrants, the city’s economy relies heavily on sectors like tourism and hospitality – industries where undocumented workers often fill crucial roles. The potential deportation of these workers could send shockwaves through Miami’s economic ecosystem, from South Beach’s glitzy hotels to the agricultural heartlands of South Florida.
Chicago, the “City of Big Shoulders,” may find those shoulders significantly weakened. With 1.7 million immigrants in its metropolitan area, the Windy City’s diverse neighborhoods and industries face an uncertain future. From the meatpacking plants to the tech startups, Chicago’s economic resilience could be tested like never before.
In the Lone Star State, Houston and Dallas stand as twin testaments to the complexities of immigration policy. These Texas titans, each home to large immigrant populations, could see their booming economies stumble. The construction sites that dot their ever-expanding skylines and the service industries that keep these cities humming could face unprecedented labor shortages.
Out West, the San Francisco Bay Area’s reputation as a bastion of innovation and progress could be challenged. The region’s tech industry, often reliant on immigrant talent, might find itself grappling with a new reality. From Silicon Valley’s coding campuses to the agricultural expanses of the Central Valley, California’s economic powerhouse could face a reckoning. Phoenix, rising from the Sonoran Desert, could see its growth trajectory altered. As Arizona’s urban center, it stands at the forefront of the immigration debate, potentially facing not just economic impacts but social and political upheaval as well.
These cities, along with others like San Diego and Las Vegas, are not just facing potential economic disruptions. They are staring down the barrel of profound social change. Family separations, community fragmentation, and the erosion of cultural enclaves built over generations are all possible consequences of mass deportations. Moreover, the fiscal implications are staggering. Undocumented immigrants contribute billions in taxes annually, often without receiving the full benefits of their contributions. Their sudden absence could leave gaping holes in city budgets, potentially affecting public services and infrastructure projects.
As these urban centers brace for impact, the debate rages on. Supporters of stricter immigration policies argue for the need to enforce laws and protect American jobs. Critics warn of economic devastation and the unraveling of America’s urban fabric. What’s clear is that America’s cities stand at a crossroads. The coming months and years will likely reshape urban landscapes in ways both visible and invisible. From the foods we eat to the services we rely on, from the neighborhoods we call home to the very character of our cities, the impacts of this proposed immigration crackdown could be far-reaching and long-lasting. As the nation watches and waits, these cities – vibrant, diverse, and economically vital – find themselves on the front lines of a policy that could redefine what it means to be an American city in the 21st century.
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In the wake of Donald Trump’s recent election victory, his ambitious plans for mass deportations have thrust America’s urban centers into the spotlight. As the nation grapples with the potential implications of what Trump calls “the largest deportation operation in American history,” cities across the country are bracing for significant changes that could reshape their economic, social, and cultural landscapes.
The stakes are particularly high for metropolitan areas like New York, Los Angeles, Houston, Dallas, and Miami, which host the largest populations of unauthorized immigrants. These cities, along with other major urban hubs such as Chicago, Washington D.C., and San Francisco, stand at the forefront of a looming transformation that could reverberate throughout the nation.
Economists warn that the proposed deportations could send shockwaves through urban economies. Mark Zandi, chief economist at Moody’s, cautions that businesses would face “significant challenges” if a substantial number of immigrants were removed. Industries such as construction, hospitality, and healthcare—pillars of urban economies—could face severe labor shortages.
Joe Brusuelas, chief economist at RSM, emphasizes the potential ripple effects: “The native-born workforce cannot meet current labor demands.” This labor gap could lead to increased wages, potentially rekindling inflation—a concern that looms large over city planners and policymakers alike.
Beyond economic considerations, the social fabric of cities hangs in the balance. Elena, a Nicaraguan immigrant in Houston, voices a fear echoed in immigrant communities across the nation: “I’m scared… This is my home.” The threat of family separations, particularly in mixed-status households, casts a long shadow over urban neighborhoods.
Immigrant advocacy groups like FIEL are mobilizing, advising clients to prepare for “anything that can happen.” This atmosphere of uncertainty could lead to decreased community engagement and cooperation with local authorities, potentially impacting public safety and community cohesion.
As the debate intensifies, cities find themselves at a crossroads. Some, like New York and Los Angeles, have historically positioned themselves as “sanctuary cities,” often at odds with federal immigration enforcement. The impending clash between federal policy and local governance promises to be a defining feature of this new political landscape.
Meanwhile, the logistical challenges of implementing such a massive deportation operation remain daunting. Questions abound regarding detention facilities, transportation networks, and the sheer manpower required to carry out Trump’s vision.
As America’s urban centers brace for potential change, the full impact of Trump’s deportation plans remains to be seen. Legal challenges are all but certain, and the resilience of America’s cities will be put to the test.
What is clear is that the coming months and years will be pivotal for urban America. As Jason Miller, a senior Trump adviser, puts it, the plan is to “immediately reinstate” immigration policies from Trump’s first term. For America’s cities, this could mean a period of unprecedented change, challenge, and, potentially, transformation.
As the nation watches and waits, the story of America’s cities in the face of this ambitious deportation plan is just beginning to unfold. The outcome will undoubtedly shape the future of urban life in America for years to come.
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Based on the election results, Donald Trump has indeed won the 2024 U.S. presidential election, defeating Vice President Kamala Harris. Here’s an analysis of the key statistics and implications:
Donald Trump has secured the presidency by winning crucial battleground states and flipping some key states that were previously held by Democrats. The final Electoral College tally is still being determined, but Trump has surpassed the 270 electoral votes needed to win.
Trump’s victory was largely secured by winning several critical swing states:
While the final popular vote tally is still being calculated, exit polls provide insight into voter priorities:
The election results extend beyond the presidency:
The outcome of this election could be seen as a challenge to mainstream media narratives for several reasons:
It’s important to note that while the election outcome may challenge some media narratives, it doesn’t necessarily invalidate all mainstream reporting. The complex factors influencing voter behavior and the challenges of accurate political forecasting remain subjects of ongoing analysis and debate.
As the dust settles on this historic election, both the media and political analysts will likely engage in extensive reflection on the factors that led to Trump’s victory and the implications for future political coverage and analysis.
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