MONEY MASTER

A record 36% of Americans would choose to rent if they were to move, according to a new Fannie Mae survey —a 10% increase over the past three years. This shift reflects a growing acceptance of renting as high home prices and soaring mortgage rates make buying increasingly out of reach. Mortgage rates, now around 7.25% for a 30-year loan, have surged due to the Federal Reserve’s tightening policy, discouraging potential homebuyers. In contrast, rental markets have stabilized, with recent data showing only modest increases in new lease prices. " High home prices over the last four years have led to a growing preference to rent, " said Fannie Mae’s Chief Economist Mark Palim. With rental growth expected to stay modest in 2025, more Americans may find attractive rental deals. Only 20% of survey respondents now believe it’s a good time to buy a home, a significant drop from 60% just four years ago.

Singapore has experienced a decline in home prices for the first time in five quarters, with an index of private home prices dropping 1.1% in the last quarter compared to the previous three months. This marks a reversal from the 0.9% increase seen in the second quarter and represents the first price decrease since the second quarter of 2023, according to preliminary estimates from the Urban Redevelopment Authority . The slowdown in sales has raised concerns about Singapore's housing market, which is on track for its worst year in new home sales since the global financial crisis. Factors such as property purchase curbs and high interest rates have significantly deterred buyers. Government Response to Housing Affordability Concerns In an effort to alleviate public frustration over housing affordability ahead of upcoming elections, authorities are releasing the largest amount of land for private residences in over a decade. Analysts from Morgan Stanley , Wilson Ng and Derek Chang,...

US consumer confidence took its sharpest dive in three years this September, driven by growing fears about the labor market , according to the Conference Board’s survey released on Tuesday. Despite this decline, more households indicated plans to buy homes in the coming months, reflecting mixed sentiment about the economy ahead of the November 5 presidential election. The survey also revealed that consumers expect inflation to rise in the coming year, clouding their outlook on the broader economy. However, interest in travel, dining out, and entertainment remains strong, potentially supporting continued consumer spending and economic growth. Last week, the Federal Reserve cut interest rates by 50 basis points, marking the first reduction since 2020, with the rate now in the 4.75%-5.00% range. Fed Chair Jerome Powell indicated that the cut was aimed at maintaining low unemployment, currently at 4.2%. "The plunge in consumer confidence underscores the growing pressure on many...

A wave of disappointing economic data from China is fueling pessimism among stock traders, who are increasingly skeptical that authorities will implement robust stimulus measures to stabilize the economy. Data released on Saturday (Sept 14) revealed that China's factory output, consumption, and investment all slowed more than expected in August, while the jobless rate climbed to a six-month high. Additionally, home prices fell compared to the previous month. “There is a fear that the authorities are losing control of the economy and won’t admit it,” said Gary Dugan , CEO of the Global CIO Office . “The market looks set to go to significantly lower levels in the absence of real, substantial new policies.” Concerns about Beijing's hesitance to take decisive action have weighed heavily on the nation's stock markets. The CSI 300 Index fell to its lowest point since early 2019 last week, while the Hang Seng China Enterprises Index in Hong Kong has dropped 13% since its May...