The Housing Market And Inflation
Despite the slight uptick, inflation is now substantially lower than its high point of 9.1 percent in the summer of 2022. “Progress has been made on inflation, down significantly from the peak,” said Mark Hamrick, Bankrate’s senior economic analyst. “But it is happening at too slow a pace to satisfy.”
The battle against inflation has not yet been won, and the Federal Reserve cannot yet declare ‘mission accomplished.’
— Mark Hamrick, Bankrate Senior Economic Analyst
At the Fed’s first announcement of the new year, at the end of January, it was implied that rate cuts would be coming at some point this year, although when has not been specified. “With the hotter-than-expected CPI, notions of a near-term rate cut by the Federal Reserve are going up in smoke,” Hamrick says. “The battle against inflation has not yet been won, and the Federal Reserve cannot yet declare ‘mission accomplished.’”
Here’s a peek into how inflation affects the housing market.
The housing market and inflation
The shelter category, which includes housing costs, continues to be a major contributor to the CPI’s monthly all-items increase. It rose 0.4 percent from last month and 5.7 percent year-over-year — combined, the shelter and gasoline indexes
