In this Real Estate News Brief, we'll look at economic news from the week ending September 10th, 2022...Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review.Economic NewsLast Monday was Labor Day, and there were few reports issued during the rest of the week. But Fed Chief Jerome Powell rocked the stock market when he spoke at the Cato Institute. It was a conference on monetary policy, where Powell vowed to fight inflation with more rate hikes, and led economists to believe we’ll see another .75-1 basis point hike at the central bank’s meeting later this month. It would be the third such rate hike in a row, and would bring the Federal Funds rate into a range of 3.25 to 3.50%. (1)Powell said during the speech: “History cautions strongly against prematurely loosening policy. I can assure you that my colleagues and I are strongly committed to this project and we will keep at it until the job is done.” Fed officials want to get inflation back down to the 2% level. The Consumer Price Index was 8.5% in July. Powell also stated there could be some “pain” in the job market which includes the possibility of layoffs. But despite the rate hikes that have already taken place, the job market is still strong. In my opinion, it's going to take some time to burn off the massive liquidity that Powell injected into the market over the past two years. According the Federal Reserve Bank of St Louis's M2 chart, the amount of money circulating in early 2020 was $15.2 trillion. Today, it's hovering around 21.6 trillion dollars. That's over $6 trillion dollars still more still in circulation.It's like Powell couldn't take his foot off the gas until March of this year, and then suddenly hit the breaks.However, the government does not seem to be slowing down the printing presses, with it's student loan debt cancellation program that could cost up to $1 trillion and now the Inflation Reduction Act that only 1 in 4 of voters believe will actually reduce inflation, according to a recent survey from Morning Consult/Politico. 34% believe it will make inflation worse.A Forbes article state that the federal government had a $2.8 trillion deficit in fiscal year 2021, mostly comprised of Covid-19 relief spending including stimulus checks and emergency rental assistance. The deficit amounted to approximately 13% of GDP and accounted for the second largest deficit since the end of World War II. Deficits over the last five decades have averaged just 3% of GDP. But the brakes haven't hit the labor market quite yet.The latest weekly unemployment report shows that initial jobless claims have dropped to a three-and-a-half month low, which is close to a record low. There were 6,000 fewer applications for unemployment benefits, compared to the week before. They were down to 222,000. The low point was last March with 166,000 new claims. (2)Mortgage RatesAnother pain point related to inflation is the cost of a home loan. Freddie Mac says the average 30-year fixed-rate mortgage was up 23 basis points to 5.89% last week. The 15-year was up 18 points to 5.16%. Freddie says that the rates vary quite a bit from one lender to another so it’s wise to shop around. (3) In other news making headlines… Bank of America No-Down LoanBank of America is launching a new program for first-time homebuyers that includes no down payment, no closing costs, and no mortgage insurance. It’s called the BofA’s Community Affordable Loan Solution, and is designed to expand homeownership opportunities for minorities. (4) Applicants will not have to have a minimum credit score. Instead, they will be able to qualify based on other data, such as payment histories for things like rent, utilities, phone, and auto insurance. Income and home location will also be considered. And they will have to complete a homebuyer certification course that is provided by BofA and HUD-approved counseling partners. Personally, I find it interesting