Daily News 4/27/2015
April 27, 2015
Monday – April 27
The analytics and data division of Black Knight Financial Services reported on Monday that home prices rose by 0.7% from January to February, the largest monthly increase since June 2014. Within the report it showed that home prices in three of the nation’s 20 largest states (Colorado, New York and Texas) hit new highs in February. Of the 20 largest states, Connecticut, Massachusetts, New Jersey and Pennsylvania all saw prices decline in February; of those, only Connecticut saw a yearly decline.
The regularly scheduled Federal Open Market Committee meeting will kick off on Tuesday and will culminate with the monetary policy statement being released on Wednesday. There is no chance of a hike in the short term Fed Funds rate, currently at 0.25%. The talks will most likely center around when the Federal Reserve will begin a hike in the Fed Funds Rate, a topic that has been highly talked about by investors. With the latest stream of tepid economic data and low inflation, a hike could now be pushed back until later in the year, instead of the anticipated June liftoff.
A recent survey by Berkshire Hathaway Home Services Homeowner Sentiment showed that 94% of home owners and potential buyers said that home ownership is a stepping stone to their long-term financial planning. The survey went on to say that 88% felt it is important to update or renovate their home over time to increase its long-term value. A big segment of the market that has been in the news on a constant basis, the millennials, say that one of the major benefits to owning a home is to have a place they’re proud to show family and friends.