📉 INFLATION EASED IN JULY — BUT DON’T EXPECT THE FED TO BREATHE A SIGH OF RELIEF JUST YET
The latest CPI report gives the economy a little good news… but there are still plenty of moving parts for mortgage rates and homebuyers.
📊 July Inflation Snapshot:
➡️ CPI: 3.4% YoY — down from 3.5% in June
➡️ Core CPI: 2.5% YoY — down from 2.6%
➡️ Monthly CPI: +0.1%
➡️ Monthly Core CPI: +0.2%
➡️ Shelter inflation: 3.2% YoY
➡️ Gasoline prices: -2.9% in July
➡️ Overall energy prices: -1.5%
🔥 Here's the part I’m watching closely…
Shelter continues to be one of the biggest pieces of the inflation puzzle. It accounts for a huge portion of core CPI, and while shelter inflation is slowing, housing costs are still keeping inflation above the Fed’s 2% target.
At the same time, the labor market is showing signs of cooling.
So the Fed is walking a tightrope:
📉 Inflation is easing
📉 Employment is cooling
📈 Energy/geopolitical risks could push inflation higher
📈 Mortgage rates remain elevated
For buyers, this is why I continue to say don't try to time the perfect mortgage rate.
Your strategy should be based on your budget, your goals, your available options and the payment that makes sense for YOU.
And remember…
🏡 You can refinance a mortgage later.
You can't go back in time and buy yesterday's house at yesterday's price.
Want to know what today's market looks like for YOUR situation?
📲 #JUSTCALLWILLIAM
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