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Real Estate Market News • June 19, 2024

Inflation, Interest Rates, and Housing Challenges: What You Need to Know This Week!

by BRYAN SELSER
“Inflation, Interest Rates, and Housing Challenges: What You Need to Know”

Inflation Trends

The Bureau of Labor Statistics (BLS) reported that inflation remained steady at 3.3% in May, slightly down from previous months. This stability is crucial for economic confidence. However, housing costs play a significant role in keeping inflation elevated.

Interest Rates Unchanged

Following a Federal Reserve meeting, Chair Jerome Powell announced that interest rates would remain unchanged. The Fed’s economic projections suggest only one rate cut in 2024. Good inflation readings influenced this decision.

Housing Supply Challenges

Despite stable inflation, housing supply remains a concern. Higher interest rates have increased construction costs and limited loans for new housing. Chair Powell acknowledges the shortage and calls for non-monetary policy solutions.

 

Sources:

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