SVN® International Corp. Economic Update – Keeping our clients up-to-date about the latest real estate landscape trends.
The March 6th, 2024 release of the Federal Reserve’s Beige Book indicated an overall increase in national economic activity over the previous six-week period. Eight of the twelve Federal Reserve districts reported slight to modest growth, with three indicating soft growth and one signaling a slight softening. However, consumer spending saw a downturn, primarily driven by a decline in retail sales, as consumers became more price-sensitive and shifted away from discretionary goods. Despite robust air travel, demand softened for restaurants, hotels, and similar establishments as prices entered a seasonal uptick.
In a recent press release, the White House announced new initiatives to address housing concerns. The administration plans to allocate $225 million in funding to create and preserve manufactured housing communities, along with establishing a new FHA program to support the sector through financing. Demand for manufactured homes has surged since the pandemic, with nearly 22 million Americans now residing in them. However, rate forecasts have become uncertain due to factors such as US growth, labor markets, and inflation. Despite expectations of a rate cut earlier in the year, recent stronger-than-expected labor market data and robust consumer demand have led to a more hawkish stance, with futures markets now placing the likelihood of a March rate cut at just 1.0%.
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