The housing market and inflation The shelter category of the CPI, which includes housing costs, remains a stubbornly large contributor to inflation overall. In April, shelter increased 0.3 percent month-over-month, and it has increased 4.0 percent in the past 12 months. Though it’s a small j...
“Proportionally, it’s a large part of the market basket,” Erica Groshen, former Commissioner of the Bureau of Labor Statistics, which administers CPI, said of housing inflation’s input into the index. “And it’s certainly more sluggish. There’s no doubt about it.” Inflation in rent...
Study found that inflation expectations can result in rise of housing prices, namely producers' and consumers' of inflation expectations, will intensively promote the imbalances of real estate market supply and demand and cause the rising housing prices....
Current homeowners generally see the value of their homes appreciate as inflation rates begin to rise; however, the longer-term impacts of inflation on housing prices are less predictable. In response to rising inflation, the Fed often raises interest rates. As interest rates increase, borrowers st...
While it's impossible to predict with any certainty where mortgage rates will head next, the latest inflation data could help keep these rates elevated, with the possibility of further increases if inflation remains stubborn. So, while the housing market has shown resilience in adapting to the hi...
Housing inflation refers to the rising cost of living in or purchasing a home, and it’s a tricky and often misunderstood topic. Contributing to the confusion are numerous reports that measure different aspects of the housing market—home values, rent prices, and material costs, among others—wi...
As the cost of home loans goes up, many consumers are squeezed out of the market, leading to a slowdown in home sales. With homes on the market for longer periods, sellers drop their asking price to attract buyers. Lower interest rates helped the U.S. housing market make its recovery af...
"This is especially the case given the risk that higher interest rates could be the trigger that bursts the equity and housing market bubbles," Lachman said. Recessions are always bad news for any party that controls the White House, and if one occurs before November, Democrats could feel Ame...
when the user cost model is specified to reflect the impact of anticipated inflation on house prices, the mortgage interest rate and the capitalization rate, the returns to homeownership are lower than determined by previous user cost studies and are consistent with a reasonably efficient market.doi...
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