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Housing market shows no sign of thawing as spring buying season nears

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Although the housing market traditionally thaws every spring, aspiring homebuyers may want to consider an extended hibernation given what is an exceptionally tough market this year.

Home prices last year rose an average of 6.7% in the country’s 20 biggest metro areas, according to the latest S&P CoreLogic Case-Shiller data. Across the nation as a whole, housing prices rose than 5% over the last year. Driving the increase are higher mortgage rates, which makes homeowners reluctant to sell their properties given the elevated costs of finding a new place, coupled with a dearth of homes on the market.

“It’s just a sort of toxic brew that means that people are not willing to sell houses, and the people who are actually looking for them don’t have a lot of stock, or don’t have a lot of affordable options,” said Javier E. David, managing editor for business and markets at Axios, told CBS News.

The average rate on a 30-year mortgage is now 6.90%, up from 6.77% last week, mortgage buyer Freddie Mac said Thursday. The difficult conditions have cast a distinct chill on the market — only 4.8 million homes changed hands in 2023, the lowest level since 2011, according to the mortgage lender. Freddie Mac expects home prices to rise 2.6% this year and 2.1% in 2025.


Home inventory remains below pre-pandemic levels

04:08

“While the S&P CoreLogic Case-Shiller Index continues to show home price resiliency against surging borrowing costs, it also highlights continued headwinds for the housing market, namely elevated mortgage rates and a severe lack of existing homes for sale,” CoreLogic Chief Economist Selma Hepp said in a report. “And as mortgage rates continue to hover in the 7% range, it will be difficult to convince existing homeowners to move at the current time.”

Meanwhile, stubbornly high inflation has dashed hopes of the Federal Reserve cutting interest rates before the spring homebuying season begins. 

“We’re in a different place now than we were even a month ago,” David said. “I think markets were expecting the Federal Reserve to start cutting rates sometime in the first half. We’ve had a run of unexpectedly hot inflation data — that means the Fed is not necessarily going to hike rates again, but they’re not in a rush to cut. So all of the hopes and dreams that we had built around this idea that the Federal Reserve was going to be giving us easier policy, the timetable is being pushed back a little bit.”

—The Associated Press contributed to the report.



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Biden set for pivotal 24 hours with primetime interview; Friends save raccoon choking on cheese at cookout

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Moderate Masoud Pezeshkian wins Iran’s presidential runoff election

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Reformist candidate Masoud Pezeshkian won Iran’s runoff presidential election Saturday, besting hard-liner Saeed Jalili by promising to reach out to the West and ease enforcement on the country’s mandatory headscarf law after years of sanctions and protests squeezing the Islamic Republic.

Pezeshkian promised no radical changes to Iran’s Shiite theocracy in his campaign and long has held Supreme Leader Ayatollah Ali Khamenei as the final arbiter of all matters of state in the country. But even Pezeshkian’s modest aims will be challenged by an Iranian government still largely held by hard-liners, the ongoing Israel-Hamas war in the Gaza Strip, and Western fears over Tehran enriching uranium to near-weapons-grade levels.

A vote count offered by authorities put Pezeshkian as the winner with 16.3 million votes to Jalili’s 13.5 million in Friday’s election.

Iran's presidential election goes to run-off
Iranian reformist candidate Masoud Pezeshkian speaks at his rally for the presidential elections in Tehran, Iran, on July 3, 2024.

Fatemeh Bahrami/Anadolu via Getty Images


Supporters of Pezeshkian, a heart surgeon and longtime lawmaker, entered the streets of Tehran and other cities before dawn to celebrate as his lead grew over Jalili, a hard-line former nuclear negotiator.

But Pezeshkian’s win still sees Iran at a delicate moment, with tensions high in the Mideast over the Israel-Hamas war in the Gaza Strip, Iran’s advancing nuclear program, and a looming U.S. election that could put any chance of a detente between Tehran and Washington at risk.

The first round of voting June 28 saw the lowest turnout in the history of the Islamic Republic since the 1979 Islamic Revolution. Iranian officials have long pointed to turnout as a sign of support for the country’s Shiite theocracy, which has been under strain after years of sanctions crushing Iran’s economy, mass demonstrations and intense crackdowns on all dissent.

Government officials up to Supreme Leader Ayatollah Ali Khamenei predicted a higher participation rate as voting got underway, with state television airing images of modest lines at some polling centers across the country.

However, online videos purported to show some polls empty while a survey of several dozen sites in the capital, Tehran, saw light traffic amid a heavy security presence on the streets.

The election came amid heightened regional tensions. In April, Iran launched its first-ever direct attack on Israel over the war in Gaza, while militia groups that Tehran arms in the region — such as the Lebanese Hezbollah and Yemen’s Houthi rebels — are engaged in the fighting and have escalated their attacks.

Iran is also enriching uranium at near weapons-grade levels and maintains a stockpile large enough to build several nuclear weapons, should it choose to do so. And while Khamenei remains the final decision-maker on matters of state, whichever man ends up winning the presidency could bend the country’s foreign policy toward either confrontation or collaboration with the West.

The campaign also repeatedly touched on what would happen if former President Donald Trump, who unilaterally withdrew America from the Iran nuclear deal in 2018, won the November election. Iran has held indirect talks with President Joe Biden’s administration, though there’s been no clear movement back toward constraining Tehran’s nuclear program for the lifting of economic sanctions.

More than 61 million Iranians over the age of 18 were eligible to vote, with about 18 million of them between 18 and 30. Voting was to end at 6 p.m. but was extended until midnight to boost participation.

The late President Ebrahim Raisi, who died in a May helicopter crash, was seen as a protégé of Khamenei and a potential successor as supreme leader.

Still, many knew him for his involvement in the mass executions that Iran conducted in 1988, and for his role in the bloody crackdowns on dissent that followed protests over the 2022 death of Mahsa Amini, a young woman detained by police over allegedly improperly wearing the mandatory headscarf, or hijab.



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Biden set for pivotal 24 hours with primetime interview

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President Biden is set for a make-or-break weekend for his political future as his reelection campaign tries to hit reset following last week’s disastrous debate. Biden again vowed to stay in the race Friday at a campaign rally in the battleground state of Wisconsin, and will sit down for a primetime interview with George Stephanopoulos on ABC News. Scott MacFarlane has the latest.

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