Real Estate News 04/03/2024

Today’s News Synopsis:

In the CPI, housing costs are about 43% of the core measure. For PCE, housing costs are 17.5% of the core measure. As of February, CPI housing costs were up 5.9% year over year. PCE housing costs were up 5.8% year over year.

In The News:

Yahoo Finance – “Housing’s outsized role in the Fed’s inflation problem: Morning Brief“ (04-02-24)

“Right now, the gap between the Fed’s preferred inflation measure and the most popular inflation measure is a full percentage point. But how the two series account for the cost of shelter yields a 1.5 percentage point gap between them — a difference that’s offset by other components to its current gap at the bottom of the ledger.”

NAR –  “Millennials Reclaim Position as Largest Group of Home Buyers“ (04-03-2024)

“Millennials have surged ahead to become the largest group of home buyers, marking a significant shift in the housing market’s demographic landscape.”

Yahoo Finance –  “Mortgage rates hover near 7%” (03-29-24)

” Mortgage rates slipped this week, but homebuyers are waiting for a more significant drop before entering the expensive housing market.”

Forbes – “Why Everything Still Feels Expensive Even As Inflation Cools” (03-25-2023)

“Inflation has been brutal over the past few years. After decades of running below 3%, starting early 2021, the Consumer Price Index increased rapidly as the economy opened back up after Covid-19 related lockdowns. It peaked at 9.1% in June 2022 and then declined to its current level of 3.2%, per Bureau of Labor Statistics data.”

Bloomberg – “A Million Simulations, One Verdict for US Economy: Debt Danger Ahead” (04-02-2023)

“The Congressional Budget Office warned in its latest projections that US federal government debt is on a path from 97% of GDP last year to 116% by 2034 — higher even than in World War II. The actual outlook is likely worse.”.