CPI Report Summary & What This Means For You

Here are the main takeaways from February's CPI report:

CPI running hotter than anticipated

The Consumer Price Index (CPI) has exceeded predictions, with the overall US CPI rising to 3.15% year-over-year in February, up from 3.09% in January, surpassing forecasts for a decrease to 3.1%. While this doesn't significantly alter the short-term market outlook, it also fails to provide confidence that the Federal Reserve will rate cuts by June.

Yesterday and today’s stock market

Regarding recent stock market performance, the S&P 500 reached yet another record high yesterday, marking the 17th such milestone this year.

Yesterday and today’s interest rate reaction

Mortgage rates have dipped below 7% for the first time in a month. Specifically, the contract rate on a 30-year fixed mortgage dropped by 18 basis points, the largest decline in nearly three months, to 6.84% in the week ending March 8th.

Tax season and filing deadline, and the subtle adverse effect on Real Estate demand to the filing deadline

With tax season among us, it's important to consider how this affects buyer and seller behavior. Buyers may be waiting for tax refunds to bolster their down payments or closing costs, while sellers might strategize to leverage potential tax benefits associated with selling a home. Typically, there's a surge in activity once tax season concludes, as both sellers and buyers gain confidence.

Slightly slower than expected open house traffic

Last weeks showings saw a slightly slower than expected foot traffic, especially compared to the start of the year. 

As always, reach out if you have any questions, or want to talk through your goals.

Email me at [email protected] or call/text me at 650.280.8888

Phone(650) 280-8888

Email[email protected]

Address OWN Real Estate
1651 El Camino Real
Millbrae, CA 94030

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