Articles Tagged with ''Capital Economics''

Has inflation reached its peak?

Capital Economics thinks so
A new note from analysts at Capital Economics says that core inflation has already peaked. The analysts posit that because labor costs and dollar appreciation have only grown modestly, core inflation is “unlikely to rise much further.”
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Trump blames Fed for stock market nosedive

President told reporters he thinks the Fed went "crazy"
President Donald Trump is quadrupling down on his ire toward the Federal Reserve’s rate hikes. On the Tarmac at Erie International Airport, he blamed Wednesday’s market meltdown on the Fed, telling reporters, "The Fed is making a mistake," and saying, "I think the Fed has gone crazy."
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CNBC: Chinese tariffs are going to make your home renovations more expensive

NAHB claims there could be a $2.5 billion tax increase on the industry
This year, the National Association of Home Builders’ Remodeling Market Index revealed that in the fourth quarter of 2017, the RMI reached 60 for the second time since 2001. Although the increasing demand for home renovation has carried over to 2018, recently imposed tariffs are expected to reduce home renovation affordability.
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Growing number of Americans say now is a bad time to buy a home

Suggests lingering memories of the housing crash may slow home price growth
There’s been a distinct uptick over the past year in the number of Americans who say now is a bad time to buy a home, and a sizable number point to high home prices as the primary reason. But caution might be a good thing, according to one think tank, as it could serve as a necessary weight tempering housing demand.
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FHFA: Home prices rise slowly

Interest rates contribute to continual slowdown
Home prices increased slightly in April, rising only 1% from March. Capital Economics says as interest rates continue to rise and mortgage lending stays tight, there will be a continual slowdown in annual price growth.
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Expert: Fed will cut interest rates in 2020

But expect 4 more rate hikes before then
Most experts are expecting a total of four rate hikes in 2018, followed by two or three more in 2019. In 2020, however, that could all change. One expert predicted that not only could the economy slow, but the Fed will even cut interest rates in 2020.
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2018 economic growth to hold steady, despite rising interest rates

Economists predict two more rate hikes
Fannie Mae’s newest report from its Economic & Strategic Research Group indicates that this year’s economic outlook isn’t going to change much. The report shows that 2018’s growth prediction remains unchanged at 2.7% and the year will see two more interest rate hikes from the Federal Reserve. But, things don’t look quite as rosy for 2019... why?
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