Economy

U.S. homebuilder sentiment rose for a fourth month in April as limited resale inventory helped drive demand for new houses, suggesting the residential real estate market is slowly recovering.

The new regulations take effect in July and come after the agency issued new equitable housing goals days earlier.

Banks could be in for a long, slow trickle of bank failures and consolidation in the coming months and years, particularly if inflation persists and interest rates keep rising. A downturn in commercial real estate could add to banks' problems.

Two housing-policy experts whose previous recommendations have been closely followed by the Biden administration are defending the Federal Home Loan Banks, raising the stakes in a debate over whether a major overhaul is needed.

The Federal Home Loan Bank system issued $37 billion in debt in the last week of March, a sharp drop-off from the $304 billion two weeks earlier, according to a person familiar with the matter.

While they see a meager gain of just 1.2% in 2024, the recovery will pick up steam in the following three years, when prices are forecast to increase 4% annually, a Pulsenomics survey found.

But a monthly increase in housing costs nationwide to start 2023 may point to a bottoming out of prices in many areas, CoreLogic said.

The personal consumption expenditures price index rose 0.3% in February, the Commerce Department said.

The Richmond Fed president said he is poised to continue fighting inflation, and supported the decision to raise interest rates by 25 basis points in March.

However, the benchmark 10-year Treasury yield pushed back up 15 basis points from a week ago as the markets settle following the recent bank failures.