Items Tagged with 'Capital Economics'


  • What's behind the recent surge in rental growth?

    A new report from Capital Economics gives us an idea
    Is the recent surge in rental growth an indicator of tightening rental markets? According to a new report from Capital Economics, analysts are optimistic about the rental market's outlook but were surprised at the boost in growth. So, what's behind this acceleration and will it continue?
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  • Low mortgage rates won't heat up the housing market, analysts say

    Instead, the slowing economy will trample homebuyer confidence and home-price growth will fall
    Mortgage rates have dropped significantly as of late, but analysts at Capital Economics warn against getting too excited about the possibility that low rates will heat up the housing market. Why? Blame the slowing economy, which will take a bite out of homebuyer confidence. Read on to learn more about why analysts predict existing-home sales will simply "tread water" over the next year despite favorable rates.
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  • Capital Economics: Rental growth may see modest declines

    Latest report says rental growth will fall back as earnings cool down
    Economists at Capital Economics noted in their latest housing market report that they expect that the gradual loosening in market conditions to mean rental growth is set to cool down. "Our profile for rental and house price growth implies that gross rental yields will rise slowly over the next three years, from 6% today to around 6.3% by the middle of 2021," the firm writes.
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  • Mortgage lenders, expect your closing rate to decline over the next year

    Closings have reached a record high, but Capital Economics warns a backslide is coming
    The closing rate for purchase mortgages recently hit a record high, but analysts at Capital Economics warn lenders that this trend is unlikely to continue. Why? Blame a slowing economy. This is bound to adversely impact borrowers’ credit quality, and the result will put downward pressure on closing rates, leading to minimal growth in home sales this year.
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  • Here’s why the housing market should expect a cash-out refi boom

    High levels of equity and falling rates have experts predicting a surge in cash-outs
    Equity levels are climbing while mortgage rates are falling, and this has some predicting an inevitable boom in cash-out refinances. Capital Economics says the number of cash-outs will reach a 10-year high in the next couple of years. But before warning bells sound for those who remember the role cash-outs played in the collapse of the housing market, keep in mind that mortgage lending and consumer attitudes have changed since the mid-2000s.
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  • This is how rates could impact mortgage lenders going into 2020

    Report indicates the Feds could slash rates 0.75% next year
    Although experts predict that 2019's economy will behave similarly to last year's, new data from Capital Economics suggests an oncoming economic slowdown will push the Federal Reserve to slash rates by 75bps come 2020. Several housing market experts weigh in on how this could impact the housing market.
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  • Capital Economics: Fed will leave rates alone – for now

    Says a March rate hike is off the table, but one more will come in late spring
    The Federal Reserve will leave rates unchanged when it concludes its January meeting next week, likely referencing its "patient" stance when it comes to rate hikes, Capital Economics said in a report released Wednesday. But while a hike in March is likely off the table, the group predicted that one more hike is yet to come.
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  • Monday Morning Cup of Coffee: Potential government shutdown looms over 2019 economic forecast

    Plus, small banks gear up for "deposit wars" and Apple drops $1 billion on Austin real estate
    Economists at Capital Economics say that while the U.S.-China trade war is certainly a concern, the potential for a long-lasting government shutdown heading into 2019 is the greatest threat to the economic outlook in the year ahead. "This one could go on for months," the economists warn, especially if Robert Mueller's report leads to the president's impeachment.
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  • 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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