The cost of renting a primary residence climbed by a brisk 0.8 percent over the past month and was up by 7.2% in the year through September. The Federal Reserve combines this with “Owners Equivalent Rent”, a gauge that approximates how much it would cost Americans to rent the house they own. OER is determined by a monthly survey of consumers who own a primary residence. The survey asks how much consumers would pay to rent instead of own their home. OER has climbed by 6.7 percent over the past year.
Mortgage Rates Resume Their Climb
Rates resumed their record-setting climb this week, with the 30-year fixed-rate mortgage reaching its highest level since April of 2002. We continue to see a tale of two economies in the data: strong job and wage growth are keeping consumers’ balance sheets positive, while lingering inflation, recession fears and housing affordability are driving housing demand down precipitously. The next several months will undoubtedly be important for the economy and the housing market.
