Interest rate rise more likely say analysts
The chance of the Fed increasing interest rates in December has increased since Donald Trump became president-elect according to analysts.
The talk among experts is that Trump’s presidency could be good news for growth and inflation, but that it would also give the Fed the conditions it needs to increase interest rates.
Estimates are early-stage as the exact shape of the new president’s policies are unclear but a poll of 57 academic, business and financial analysts by the Wall Street Journal has most revising their figures upwards.
Meanwhile, in a client note Monday, Michael Hewson of CMC Markets noted
that there could be “additional rate rises quite quickly, if market measures of inflation expectations continue to increase."
Californian homes out of range for most buyers
Most potential homebuyers in California would be unable to afford it, the state’s real estate agents’ body says.
In its affordability report, the California Association of Realtors says that only 40 per cent of average-income earners could afford a median-priced condo in the third quarter of 2016.
The figures are based on a median price of $418,230, an annual income of $81,290 and a monthly mortgage and taxes payment of $2,030; based on a 30-year FRM at 3.76 per cent.
For a single-family detached home it’s even worse; just 31 per cent could afford to buy, based on a median $515,940 home. It would require a $100,290 income.
The figures show a slight improvement from the third quarter of 2015 but were broadly flat from the previous quarter of 2016.
Pat Benatar lists Maui home for $3.6 million
Singer Pat Benatar and her husband Neil Gyrado have listed the Maui home they bought in 2000.
The original property was purchased for $550,000 and the couple built a 2-bedroom plantation-style house with a guest bedroom, usually used as a recording studio, above the garage.
The oceanfront home’s outdoor space was expanded following the purchase of adjoining land in 2005.
The musician couple hasn’t lived in the property since 2009 when they relocated to California.
It is listed at $3.6 million with Dan Omer and Megan Bouhey of Island Sotheby’s International Realty, according to realtor.com.