Housing Market and Economic News Update: October 11, 2024

A Greener Homes Trend: According to a survey by the National Association of Home Builders (NAHB), homebuyers are placing greater emphasis on features that boost energy efficiency and enhance security when making their purchasing decisions.
Surging Insurance Premiums: Meanwhile, data from ICE shows that the average insurance premium for single-family homes has surged by 52% since 2020, driven by insurers facing massive losses from natural disasters.
Mortgage Applications: On the mortgage front, applications fell by 5.1% last week as interest rates began to rise. Both purchase and refinance applications saw declines compared to the previous week.

Jobs: September brought a surprising surge in job growth, with far more jobs added than expected, and the unemployment rate dipping further—signaling that the labor market is stronger than anticipated. Last week saw the largest increase in jobless claims in over a year, likely a result of Hurricane Helene’s impact on certain sectors.
Inflation Lingers: Additionally, inflation for September came in above predictions. Combined with the robust job market data, this has dampened hopes for any upcoming rate cuts by the Federal Reserve.
Inflation Lingers: The U.S. economy grew at a strong 3% annual rate in the second quarter of 2024, an upgrade from the previous 2.8% estimate, driven by robust consumer spending and business investment.

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