With interest rate rises on hold and signs of a slowing global economy, there have been a lot of noises that house prices globally are falling. We look at how U.S. house prices are looking compared to a year ago.
We wrote about three slightly different U.S. recession indicators that have been predictive of the past few recessions and have been tracking how near or far are those from being invoked, here’s where we are in March 2019,
At the start of 2019 we wrote that 2019 will be a year that will be different with interest rate hikes slowing or interest rates even reversing.
Earlier this month the European Central Bank said interest rates would remain at record lows at least until the end of the year and then last week this was followed by the Federal Reserve saying that it does not expect an interest rate rise for the U.S. for the rest of 2019.
The Federal Open Market Committee (FOMC) announced during the week that it had decided to maintain the target range for the federal funds between 2.25% to 2.5%.
Gross U.S. Federal Debt as percent of Gross Domestic Product (GDP) hit 105% in 2018, the highest since 1946.
The answer is different on how you look at it – in terms of absolute outstanding debt, growth rates and relative to GDP.
In absolute terms the total credit market or total debt outstanding of the U.S. which includes debt owed by the government (Federal and local), corporations and households stands at $72 trillion.
Household wealth (or household net worth) in the United States fell by a record $3.72 trillion in the fourth quarter of 2018. The fall in the stock markets would have probably been the largest contributor to the overall fall.
Are more houses being constructed? And what about the average and median prices of houses being sold?
Real gross domestic product (GDP) for the United States increased at an annual rate of 2.6% in Q4 2018, according to the initial estimate released by the Bureau of Economic Analysis (BEA).
We wrote recently that delinquency and charge-off rates across banks in the United States remain low and that bad loans aren’t really increasing for banks in the United States despite some claiming that they are. We had also written about banks in the United States having a problem – they couldn’t find enough customers to lend money to. We wrote that last year and it appears a few things are changing; bank lending in the U.S. is now finally on the up.