clear
Saturday June 23rd, 2018 11:04PM

The Latest: Shares in homebuilders fall ahead of Fed meeting

By The Associated Press
Related Articles
  Contact Editor

WASHINGTON (AP) — The Latest on the Federal Reserve policy meeting (all times local):

12:30 p.m.

Homebuilders are taking a beating on Wall Street ahead of Wednesday afternoon's Federal Reserve meeting, where analysts are expecting a rate increase.

The Fed's rate hikes can translate into higher interest rates for credit card holders and homeowners with adjustable-rate mortgages or home-equity lines of credit.

The construction industry is already wrestling with rising costs for labor, material and available land. External factors, like rising gasoline prices, may also be putting the squeeze on potential buyers.

Fewer Americans signed contracts to buy homes in April due to a shortage of inventory. Mortgage rates had ticked down the past couple weeks, providing some relief for potential homebuyers.

But with a quarter-point hike expected from the Fed, that relief may be short-lived.

KB Home shares fell 6 percent. Meritage Homes Corp., PulteGroup, Lennar Corp. and Dr. Horton all slid around 5 percent. Materials companies and home improvement stores like Lowe's are also being pressured.

Mortgage rates remain historically low, but a combination of rising costs is weighing on the sector broadly.

-----

6:30 a.m.

Stocks are edging up ahead of an interest rate meeting by the Federal Reserve.

Futures for the Dow are up 0.1 percent and those for the S&P 500 are 0.2 percent higher. European indexes are up, with Germany's DAX gaining 0.2 percent and Britain's FTSE 100 0.3 percent higher.

The dollar, meanwhile, is edging up as well, gaining 0.1 percent against the yen, to 110.52 yen.

Traders widely predict the Fed will raise its main rate by a quarter point on Wednesday. They also expect its chairman, Jerome Powell, to hint during a news conference that the central bank might accelerate the pace of rate hikes slightly in coming months.

___

4:50 a.m.

Financial markets are steady as investors look ahead to an expected interest rate increase from the Federal Reserve later Wednesday.

Dow and S&P 500 futures are flat and European indexes are mixed. Britain's FTSE 100 is down 0.1 percent and France's CAC 40 is 0.2 percent higher.

While traders widely expect the quarter point rate increase, they will be paying close attention to a news conference by Fed Chair Jerome Powell for hints on whether the central bank might accelerate the pace of rate hikes in coming months.

The U.S. economy is adding jobs at a strong pace and inflation has risen, leading some economists to think that the Fed will indicate that it may raise rates four times this year, up from its current forecast of three hikes.

___

12:05 a.m.

The Federal Reserve is set to modestly raise its key short-term interest rate on Wednesday for the second time this year. But attention will be focused mainly on any hints that the Fed might accelerate its rate hikes in the coming months.

Some economists think the Fed will signal that it expects to raise rates four times this year, up from its current projection of three hikes. Others believe the central bank will stick with its projection of three rate increases, partly out of concern that rising trade tensions triggered by President Donald Trump's aggressive policies might slow global growth.

The policymakers will reveal their action in a policy statement and in updated economic forecasts, followed by a news conference by Chairman Jerome Powell.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Financial Services, AP Business - Personal Finance, AP Business - Real Estate
© Copyright 2018 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Videos show Vegas police helping people duck, escape gunfire
Some of the first officers to respond to the deadliest mass shooting in modern U.S. history huddled with people taking cover, organized escape routes and carried wounded victims to safety
9:42PM ( 17 minutes ago )
'Like dominoes': Utah homes burn as wildfires menace US West
A brush fire raced through a neighborhood in the Utah tourist town of Moab, destroying eight homes as nearby states struggled with blazes that threatened homes
9:40PM ( 19 minutes ago )
Koreas holding military talks to reduce tensions on border
The rival Koreas are holding rare high-level military talks to discuss reducing tensions across their heavily fortified border
9:37PM ( 22 minutes ago )
Associated Press (AP)
Bold California initiative to split state in 3 faces hurdles
Californians will face a choice this November of whether to divide the nation's most populous state into three, an effort that would radically shake up the West Coast
8:00PM ( 2 hours ago )
Worker protections seen at risk in Trump health care shift
Legal and insurance experts say worker protections at risk in Trump's latest move against 'Obamacare'
7:12PM ( 2 hours ago )
The Latest: Comcast eyes Fox's international business
Comcast is making a $65 billion bid for Fox's entertainment businesses, setting up a battle with Disney to become the next mega-media company
6:44PM ( 3 hours ago )
AP Business
Senators seek to soothe relationship with Canada
Senators from both parties seek to mend a frayed relationship with Canada during a closed-door meeting with Canadian Foreign Minister Chrystia Freeland
5:08PM ( 4 hours ago )
Stocks slip after Fed says interest rates will rise faster
US stocks finish lower after the Federal Reserve raises interest rates for the second time this year and says it expects to increase rates two more times this year
4:57PM ( 5 hours ago )
Trump declares oil prices too high, blames OPEC
President Donald Trump is blaming OPEC for high oil prices but other factors are driving up the numbers
4:56PM ( 5 hours ago )
AP Business - Economy
The Latest: Shares in homebuilders fall ahead of Fed meeting
Shares of homebuilders slide ahead of an interest rate decision by the Federal Reserve
1:19PM ( 8 hours ago )
Stock markets rise ahead of Fed rate decision
Global stocks are up as investors look to an expected interest rate increase from the Federal Reserve and watch out for hints of further hikes this year.
7:25AM ( 14 hours ago )
The Latest: Stocks, dollar edge up ahead of Fed decision
Stocks are edging up ahead of an interest rate decision by the Federal Reserve
6:32AM ( 15 hours ago )
AP Business - Financial Markets
AP Investigation: Local fish isn't always local
An AP investigation finds that a seafood company promising wild-caught domestic fish traceable to a dock was selling a fishy tale.
3:12PM ( 6 hours ago )
AP Investigation: Sustainable seafood dealer sold fishy tale
An Associated Press investigation finds that a leading sustainable seafood distributor who promised wild-caught, domestic fish traceable back to a dock has been duping chefs across the U.S.
2:16PM ( 7 hours ago )
Anticipation surrounds Fed's rate forecasts after next hike
Anticipation surrounds Fed's rate forecasts to follow Wednesday's expected hike
12:16AM ( 21 hours ago )
AP Business - Industries
Asian shares mostly higher with all eyes on Trump-Kim summit
Asian shares are mostly higher as market players try to digest the summit between President Donald Trump and North Korean leader Kim Jong Un in Singapore
3:22AM ( 1 day ago )
Stock markets rise slightly ahead of Trump-Kim meeting
U.S., global markets mostly higher amid preparations for President Trump's meeting with North Korean leader Kim Jong Un
4:22PM ( 2 days ago )
Stock markets mostly higher ahead of Trump-Kim meeting
U.S., global markets mostly higher amid preparations for President Trump's meeting with North Korean leader Kim Jong Un
3:35PM ( 2 days ago )
AP Business - Financial Services
Federal judge approves AT&T-Time Warner merger
Federal judge approves AT&T-Time Warner merger, potentially ushering in a new era of media mega-mergers
8:53PM ( 1 day ago )
Charitable giving in US tops $400 billion for first time
Fueled by a surging stock market and huge gifts from billionaires, charitable giving in the United States in 2017 topped the $400 billion mark for the first time
3:23PM ( 1 day ago )
London mayor optimistic about tech amid investment concerns
London Mayor Sadiq Khan says he's optimistic the city will continue to attract international investors after Brexit as a survey showed Britain's attractiveness as a destination for foreign direct investment dimmed last year
11:26AM ( 2 days ago )
AP Business - Personal Finance
US average mortgage rates fall; 30-year at 4.56 percent
Long-term U.S. mortgage rates fell this week, breaking a steady climb that pushed them to their highest levels in seven years. The average rate on 30-year, fixed-rate mortgages was 4.56 percent, down from 4.66 percent last week.
1:43PM ( 1 week ago )
US pending home sales fell 1.3 percent in April
US pending home sales fell 1.3 percent in April, down 2.1 percent from a year ago
10:34AM ( 1 week ago )
For-sale signs vanish and March home prices jump 6.8 pct
US home prices climbed in March with buyers paying a premium as the number of homes up for sale decline and mortgage rates rise
9:29AM ( 2 weeks ago )
AP Business - Real Estate
Videos show Vegas police helping people duck, escape gunfire
Some of the first officers to respond to the deadliest mass shooting in modern U.S. history huddled with people taking cover, organized escape routes and carried wounded victims to safety
9:42PM ( 18 minutes ago )
Koreas holding military talks to reduce tensions on border
The rival Koreas are holding rare high-level military talks to discuss reducing tensions across their heavily fortified border
9:37PM ( 23 minutes ago )
'Like dominoes': Utah homes burn as wildfires menace US West
A brush fire raced through a neighborhood in the Utah tourist town of Moab, destroying eight homes as nearby states struggled with blazes that threatened homes
9:35PM ( 24 minutes ago )
Big hurdles for bold push to split California into 3 states
California voters will face a question this November on whether to slice up the nation's most populous state into three
9:34PM ( 25 minutes ago )
San Francisco elects first African-American woman as mayor
San Francisco Supervisor London Breed emerged victorious a week after Election Day to become the city's first African-American woman elected mayor
9:30PM ( 29 minutes ago )