Real Estate News 9/22/2023

Today’s News Synopsis:

Alongside its policy decision on Wednesday to hold rates in a range of 5.25%-5.5%, a 22-year high, the Fed released updated economic forecasts for interest rates, unemployment, growth, and inflation.

In The News:

Yahoo Finance– “Interest rates staying ‘higher for longer’ means at least through 2026 for the Fed” (9-21-2023)

“What, exactly, “longer” entails is at the heart of investor debates about the Fed’s policy future. But on Wednesday, the central bank offered further outlines of its answer — at least three more years.”

LA Times – “Tracking hone and rent prices in Southern California” (9-21-2023)

“In August, the average home price across the six-county region was $829,416, according to data from Zillow. That’s up 0.58% from the prior month, and the sixth straight month of increases.”

Yahoo Finance – “Mortgage rates top 7% for the sixth straight week-but could go higher” (9-22-2023)

“The 30-year average mortgage rate rose to 7.19% this week from 7.18% the week before, according to Freddie Mac. The increase comes after the Federal Reserve on Wednesday signaled its benchmark interest rate will remain higher for the near future.”

CBS News-“What the Fed’s rate pause means for home equity loan, HELOC rates” (9-20-2023)

“The federal funds rate affects how much it costs banks to loan out money and, in turn, how much they charge borrowers. When the Fed raises the federal funds rate, the interest rates on new home equity loans and HELOCs also goes up. Conversely, when the Fed lowers the federal funds rate, interest rates on home equity loans and HELOCs also decrease.”

Yahoo Finance – “IRS plans to cut back on its audits of lower-income taxpayers” (9-20-2023)

“Almost half of the IRS audits in 2022 focused on families making less than $25,000 and claiming the EITC, according to Syracuse University’s Transactional Records Access Clearinghouse. And the vast majority of those received the audit by mail.”

Yahoo Finance – “Federal Reserve leaves interest rates unchanged at 22-year high, signals one more hike in ’23” (9-21-2023)

“The Federal Reserve held interest rates steady at a 22-year high on Wednesday while signaling another rate hike will be needed later this year to bring inflation back to its 2% target”