About i360’s Consumer Pulse: The Consumer Pulse asks 1,000, of the 2.5 million US adult panelists, over 150 questions daily. Questions center around key topics such as economy, lifestyle, real estate, automotive, shopping, employment, political opinions, and more.
The world has come a long way since William Shakespeare purchased his family home for £120 or roughly $151 USD in 1597. Today, the real estate market has become increasingly competitive, making it more challenging for the median US household to buy their dream ‘castle’. As housing inventory remains low and interest rates steadily climb, it’s no surprise that consumers are becoming more cautious about buying or selling a home.
On May 3rd, 2023, The US Federal Reserve increased the Fed Funds rate a quarter point, while also signaling a pause in the rate hiking cycle. In fact, futures markets predict that FED will cut rates later this year. i360s Consumer Pulse has been tracking the housing market and provides insights valuable to investment strategies.
Let’s take a look at what consumers expectations are about interest rates in the near future:
Looking at the chart above, there is a slight variation in responses according to panelists’ geographic location, and even though Federal Reserve has expressed not to increase the rates, nearly 57% of US adults believe that interest rates will continue to rise in the near future. Will consumer confidence increase with the Federal Reserve’s latest announcement, or will sheepish consumer behavior continue to affect the overall housing market? This is a trend that i360’s Consumer Pulse will continue to monitor. Subscribe to learn more about how to receive real-time updates from i360’s Consumer Pulse.
Disclosure: The information in these blog posts, based on i360’s Consumer Pulse, is for informational purposes only and should not be construed as investment advice on any matter.