Weekly Economic Update: Encouraging Signs for Home Buyers and Sellers

Dear Friends, Colleagues & Clients,

We are pleased to share this week’s economic update with insights relevant to home buyers and sellers.

Economic Highlights:

• Inflation: There is positive news on the inflation front, with the Consumer Price Index (CPI) for June showing a month-over-month decrease of 0.1% and a year-over-year increase of just 3%. Core CPI rose by 3.3% year-over-year, its smallest increase since April 2021. These figures were lower than expected, suggesting inflation is cooling.
• Producer Prices: The Producer Price Index (PPI) rose by 0.2% month-over-month in June and 2.6% year-over-year, slightly above expectations.
• Consumer Sentiment: The Michigan survey of consumer sentiment hit an 8-month low, indicating a potential rate cut environment, which could further lower mortgage rates.

Market Performance:

• Stock Markets: The Dow Jones closed at 40,000.90 (+1.6% for the week), the S&P 500 at 5,615.35 (+0.9%), and the Nasdaq at 18,398.45 (+0.3%).
• Treasury Yields: The 10-year Treasury bond yield closed at 4.18%, and the 30-year yield at 4.39%, both showing a decrease from last week.

Mortgage Rates:

• 30-Year Fixed: 6.89%, down from 6.95% last week.
• 15-Year Fixed: 6.17%, down from 6.25% last week.

Outlook: With inflation cooling and mortgage rates trending downward, this is a favorable environment for home buyers looking for affordability and sellers aiming for optimal pricing. Next week, we'll receive retail sales figures and June home sales data, which could further influence mortgage rates.

For detailed data specific to your area, please contact me.

Have a great week ahead!

Best regards,

Tina Lucarelli - Global Real Estate Advisor

DRE 02012354