Unfortunately for Tampa, Miami, and Dallas buyers, their cities have seen the biggest increases in home prices—Tampa leads the way with a 35% jump.
Home Prices Are Still High but Slowing
Home prices, while still rising and well above where they were in June 2021, have been slowing amid soaring mortgage rates over the past year thanks to inflation-busting interest-rate hikes. And while average mortgage rates are lower than they were in June, they’ve started to creep upward again. With the central bank likely to hike rates again in September, higher rates could be in our future. The upside? It might cause home price growth to slow even further.
Job Market Brings Some Good News
And in the labor market, if you want a job, employers are still hiring. Job openings held steady in July, with 11.2 million openings available, according to the Department of Labor’s monthly job openings and labor turnover survey (JOLTS). In more good news, layoffs were little changed last month, showing that the job market is still going strong. The Federal Reserve often looks to the labor market as a temperature check of the strength of the U.S. economy. If the jobs market is still going strong, then the Fed will likely conclude that the economy can withstand the pressure of rising interest rates and, in theory, fend off a recession. This article originally appeared in ‘The Balance Today’ newsletter. You can get ‘The Balance Today’ delivered to your inbox daily, just sign up here.
