Europe can’t achieve space sovereignty alone. Here’s why 
‘Buy now, pay later’ doesn’t feel like debt. For young people, that can be a big problem 
Physicists zoom into the birth of cosmic rainstorms with new CERN study 
China’s robots can run faster than Usain Bolt – now they are being prepared for war 
Goldman Sachs Forecasts Fed Rate Hike as Inflation Risks Rise 
AI is supercharging money scams – here’s what you can do to protect yourself 
Who should own the knowledge that underpins AI technology? 
What is Zionism? The different meanings of a contested term 
Add as a preferred source on Google
Yesterday S&P/Case-Shiller home prices were released in US, that showed housing market is still far from recovery and might not be strong enough to handle rate hikes by FED.
- US mortgage rates, especially the fixed rates have risen already in anticipation of rate hike by US Federal Reserve this year.
- While 30 year yield has to lend to US governments has been close to 2.5%, people are paying around 3.6%-4% for 30 year tenure prime mortgage. However Mortgage rates have somewhat eased 30 to 40 basis points from last year's high in 2014.
Chart attached explains home prices as measured by S&P/Case-Shiller index for national and 20 cities. S&P/Case-Shiller index is based on pioneering research of Robert Shiller and Karl Case, which tracks real estate prices across nations and generally considered as a leading indicator.
Latest reading shows further softening of home prices across nation.
- Index fell nationwide by -0.06%, whereas top 20 cities saw drawdown of -0.03% on monthly basis.
FED this year facing several hurdles to decide on rate hike mainly from weaker manufacturing and housing. Reports suggest that people are facing trouble to refinance their mortgages.
Weaker data from housing sector will continue to pose challenge for FED to decide on suitable rate hike path. Moreover, Charles Evans group might increase inside FOMC, who are calling for first rate hike in 2016.
