Inflation in the US has started trending down per latest data
Oil and gas prices have came down significantly. Prices of raw materials like Lumber and steel prices have also come down. Used car sales also retreating down 7.8%. Price of homes started to stabilize and rental home prices started to flatten as well. Emerging and supply chain becoming more reliable. China zero covid policy also started to relax which will improve supply chain issues. The supply of goods getting better and demand is being curtailed by higher interest rates environment. Inflationary pressure are still felt with food cost up 10.7%. and wage pressure continues above average pace because of the labor shortage. Current unemployment rate is at 3.7%. Labor shortage will most likely continue to drive inflationary pressure.
The good news the fed started to slow increase of interest rates and they are expected smaller rate increases going forward.
When rate flattens, the expectation gap between buyers and sellers will start to normalize as well. The underlying economics are still relatively solid. Covid has brought major challenges to US economy but over the long run, things will begin to stabilize again with growth in horizon.
Inventory of homes available continues to increase due to higher rates environment.
Login with Google