In this Driving It Home episode, Emily Chenevert and Dr. Clare Losey chat about the recently proposed debt ceiling deal and how it will affect real estate if it passes both the house and senate. Listen in now.

In this Driving It Home episode, Emily Chenevert and Dr. Clare Losey dive into the state of new construction in the Austin MSA. Here's what you can look forward to hearing more about:

Last week, we saw the release of some important economic indicators along with April's housing statistics. Inflation remains high. Slowing consumer spending indicates a cooling economy despite persistently high consumer inflation and a strong labor market. Consumer sentiment also took a hit, falling to a six-month low in May. Looking ahead, we can expect turbulence in the mortgage market due to stress in the regional banking system and the decision on the debt ceiling affecting the bond market, which closely tracks the 30-year fixed mortgage rate. However, if the yield on the 10-year Treasury falls, we may see mortgage rates follow suit. Our April housing statistics show the market adjusting to current conditions, with both sales and home prices contracting on a YoY basis. We remain optimistic about the long-term as the moderation in home prices reduces the drag of high mortgage rates on affordability.

Last week, the Federal Reserve raised the federal funds rate again - marking its tenth consecutive rate hike since March 2022. Ultimately, this increased the effective rate to hover between 5-5.25% which is the highest level pre-Great Recession. Although this seems like it could result in significant mortgage rate increases, the market has likely already priced in this anticipated change - meaning we shouldn't see a material rise in rates over the near term. Instead, we may experience a slight decline in mortgage rates due to the ongoing banking sector turmoil and decelerating inflation.

Today, we're proud to formally announce Dr. Clare Losey as ABoR's first Housing Economist.