July brought more positive news for the markets. According to the National Association of REALTORS® (NAR), pending home sales for the month marked three consecutive months of growth, with gains across all major regions in both month-over-month and year-over-year transactions.
NAR’s Pending Home Sales Index (PHSI) rose 5.9 percent to 122.1 in July, with YoY contract signings increasing 15.5 percent. According to NAR, an index rating of 100 is equal to the level of contract activity in 2001.
On Thursday, Aug. 27, the Federal Reserve announced a major policy shift, stating it would be willing to allow inflation to run higher than typical if it supports the labor market and economy. According to the Fed, they will allow inflation to run “moderately” over their 2 percent goal “for some time” if inflation averages 2 percent over time.
If you have a spare room in your home, renting it out can be a way to earn extra to pay the mortgage. There can be problems with this sort of arrangement, however, that could make you wish you hadn’t invited a renter into your home, so it’s important to be educated about the process as much as possible.