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Continued Healthy Housing Market

The Consumer Price Index (CPI) was released showing flat levels of inflation on the consumer level month-to-month.  Annually, CPI decreased by 0.3%, but when stripping out food and energy costs, the CPI number actually increased very slightly by just 0.1%

The CPI is a report that measures the change in prices on goods and services.  By analyzing this number, we can take a peak into the level of inflation down to the consumer level.  The energy component dipped because gasoline dropped in price by 4.2%, and medical care increased by 0.4%.  Housing, which is a major component, showed an increase of about 0.3%.  It is important to keep an eye on inflation data because it affects mortgage interest rates negatively when it is increasing.

Speaking of housing, it is encouraging to see that mortgage delinquencies across the U.S. in September fell to their lowest levels in about 18 years, at a rate of only 4.4%!  This time last year it was at 5%.  

With tamer levels of inflation, lower levels of delinquencies and continual home appreciation, we see the makings of a healthy and strong housing market.  Homeownership continues to be a strong investment, and a great mechanism to build wealth.

Sources:

http://bit.ly/2Ca437E

http://bit.ly/2SFvEme