Source: Longview News Journal —
There’s good news on the inflation front: December marked the sixth straight month that the U.S. rate of inflation has decreased.
According to the latest figures from the U.S. Bureau of Labor Statistics, released Jan. 12, the Consumer Price Index (CPI) fell 0.1% in December. It had risen by the same amount in November. The inflation rate rose 6.5% between December 2021 and December 2022, versus 7.1% between November 2021 and November 2022. And while 6.5% inflation might still feel uncomfortably high to consumers, it is certainly cooling.
Here’s a peek into how inflation affects the housing market:
The CPI’s 0.1% monthly decrease was led by a 4.5% decrease in the energy index, including a 9.4% decrease in gasoline and 16.6% decrease in fuel oil. However, shelter — which represents housing-related costs — was up 0.8% in December.
According to Bankrate’s data, the current 30-year fixed mortgage rate is 6.46%, down from last month’s rate of 6.64%. In contrast, the CPI rent index and owners’ equivalent rent index rose 0.8% between November and December 2022.
Nationally, home prices rose 8.6% year-over-year in November, CoreLogic reports. October’s yearly increase was 10.1%, and September’s was 11.4%. Clearly, this represents a slowdown — although it’s still high by historical standards.
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