Inflation sees the lowest annual rise since 2021
Published On Oct 10, 2024, 1:34 PM
Inflation measured by the Consumer Price Index (CPI) has seen the lowest annual rise since February 2021, at 2.4% over the last 12 months. In September, the CPI increased by 0.2%, which mirrors previous months. Major contributors to this rise were food and shelter costs. Despite these increases, there is optimism as energy costs fell by 1.9% in September. The Federal Reserve aims for around 2% inflation before considering cutting interest rates, which it may do soon, potentially impacting mortgage rates favorably. Existing mortgage rates are fluctuating around 6%, but recent interest rate cuts from the Fed could stabilize or decrease them further, leading to rising home sales.
Stock Forecasts
XHB
Positive
With lower inflation growth and a likelihood of interest rate cuts, market conditions may improve, particularly for housing-related stocks and ETFs. Investors should consider REITs and homebuilder stocks as they could benefit from stabilizing mortgage rates and increased home sales.
Related News
A Trump Fix for the Housing Crisis Could Actually Make It Worse
Oct 11, 2024, 12:01 PM
The former president often implies that deportations will bring down housing costs. Reality is more complicated.
Inflation sees the lowest annual rise since 2021
Oct 10, 2024, 1:34 PM
The Consumer Price Index (CPI), the main measure of inflation, increased 0.2% in September, a similar increase consumers saw in August and July, the Bureau of Labor Statistics reported.
Mortgage rates predicted to increase in next few days
Oct 10, 2024, 6:50 AM
Recent falls in rates could come to "an abrupt halt" in the next few days, according to brokers