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September housing reports show further deterioration as Fed weighs rate hikes

Separate reports on U.S. housing showed further deterioration in September as the Federal Reserve weighs whether to raise interest rates again. CNBC reported that existing-home sales had remained depressed after reaching multi-decade lows during the 2022–2023 tightening cycle.

AI-assisted synthesis · Based on 3 outlets' reporting · Article text read from 1 of 3 outletsHow it's made

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3 outlets2 regionsLatest reporting 2 min read
Coverage: Too few ratedL 0 · C 1 · R 0 · 2 unrated

What happened

The brief

Separate reports on U.S. housing showed further deterioration in September as the Federal Reserve considers whether to raise interest rates again. CNBC reported that the reports were released on Tuesday and described the weakness as arriving while the central bank weighs its next rate decision. The account does not identify the September measures or give their values.

Existing-home sales reached multi-decade lows during the 2022 to 2023 tightening cycle, CNBC reported. During that period, the average 30-year mortgage rate rose from roughly 3 percent to about 7 percent. Existing-home turnover has remained depressed since, according to CNBC. The account describes two different interest-rate channels relevant to housing.

The Federal Reserve's policy rate anchors short-term borrowing costs and shapes expectations, while lenders price 30-year mortgages using long-term Treasury yields. Those longer-term yields also move with growth and inflation outlooks, CNBC reported.

That distinction frames the central bank's current dilemma in the account: housing weakness is one warning sign as officials weigh another increase in the policy rate, but mortgage rates are also influenced by longer-term yields and economic expectations. The article does not provide the Federal Reserve's decision or a specific forecast for mortgage rates.

The reports therefore point to continuing weakness in housing alongside an unresolved rate decision. CNBC says the figures in the Tuesday reports will determine whether the warning signs amount to a caution or signal a sharper downturn. The account does not state the figures or specify what threshold would separate those outcomes.

For now, the reported details are the September deterioration, the prolonged depression in existing-home turnover, and the distinction between the policy rate and the yields lenders use to price 30-year mortgages. The Federal Reserve is weighing whether to raise rates again; the account gives no decision or timetable.

Why it matters

  • Existing-home turnover has stayed depressed since the 2022 to 2023 tightening cycle, when sales reached multi-decade lows.
  • The average 30-year mortgage rate rose from roughly 3 percent to about 7 percent during that tightening cycle, a concrete measure of the borrowing-cost change described.
  • The Federal Reserve's policy rate affects short-term borrowing costs and expectations, while long-term Treasury yields are used to price 30-year mortgages and also respond to growth and inflation outlooks.

What to watch next

  • Whether the Federal Reserve raises interest rates again; the account says the central bank is weighing that decision.
  • What the September housing figures show, which CNBC says will determine whether the warning signs amount to a caution or something sharper.

How it's being covered

Coverage analysisShow details
3 source articles · 3 unique outlets
Outlet political mix: Too few rated· 1 Center · 2 unrated
Where the outlets are based: US/Canada 33% · Africa 33% · Other 34%
Outlet political mix
Too few rated
Left
Center
Right
0 outlets
1 outlet
0 outlets
The marker shows coverage balance: each unique outlet counts once. 2 unrated outlets are not included.
Geography
Where the outlets covering this story are based.
3 unique outletsDominant coverage: US/Canada
How we measure coverage

How outlets' accounts compare

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Timeline

Developments from this story's sources, dated background we compiled and fact-checked, and our earlier coverage. Each row says which.
  1. President Woodrow Wilson signed the Federal Reserve Act, creating the Federal Reserve System.
    Background · compiled and fact-checked by Updat3
  2. Congress enacted amendments to the Federal Reserve Act setting the goals of maximum employment and stable prices.
    Background · compiled and fact-checked by Updat3
  3. The mortgage-rate surge followed the Fed’s pandemic-era response: on March 15, 2020, the central bank cut its federal-funds target to near zero and began large-scale purchases of Treasury and mortgage-backed securities.
    Background · from our historical context
  4. The Federal Reserve began raising its target federal funds rate.
    Background · compiled and fact-checked by Updat3
  5. Freddie Mac reported that the average 30-year fixed mortgage rate had reached 7.08%.
    Background · compiled and fact-checked by Updat3
  6. The Federal Reserve raised its federal funds rate target to 5.25%–5.50%.
    Background · compiled and fact-checked by Updat3
  7. The Federal Reserve cut its federal funds target range by half a percentage point, to 4.75%–5.00%.
    Background · compiled and fact-checked by Updat3

How we got here

On July 26, 2023, the Federal Reserve raised its benchmark federal-funds rate by a quarter point, to a range of 5.25%–5.5%, after pausing in June; the increase was its 11th since March 2022. The Fed’s September 2023 projections, published after its September 19–20 meeting, left open the possibility of another increase that year.

The Federal Reserve sets short-term policy rates, while fixed mortgage rates are influenced by longer-term bond yields and expectations for inflation and future policy. During the tightening cycle of 2022–23, the average 30-year mortgage rate climbed from roughly 3% to about 7%, according to the source context.

Original sources

1 of 3 articles · US/Canada · Show all

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