"Inflation is coming down"

[Terrel L. Shields]

The consumer-price index, a measure of goods and services costs across the economy, fell slightly from May, dropping the year-over-year inflation rate to 3%, which was the lowest since June 2023.

Now Wall Street expects Powell to immediately drop interest rates by big bunches. I seriously double the Fed drops rates until after the election for no other reason than to avoid the appearance of impacting the election. Of course, food and gas are not in the core inflation figures, but I am hearing a lot of complaints about rapidly escalating prices for insurance. And despite corn and wheat prices to farmers falling, I see little evidence of more sales, larger packaging, nor lower prices for much of anything.

 

[Fernando]

This year I went to Minneapolis and Boston area and I do envy their lower prices in restaurants and gasoline and even sales tax.
Costco has same prices here as over there so Costco has great deals here.
I'm not happy with the higher cost of living here. I blame it on the politicians with the $1.60+/gallon tax on gasoline and the push for higher minimum wage.
On a small limited income, it must be hard to live in Bay Area.

 

[Dublin ohio]

I'm not happy with the higher cost of living here. I blame it on the politicians with the $1.60+/gallon tax on gasoline and the push for higher minimum wage.

I'm not happy with the higher cost of living here. I blame it on the voters with the $1.60+/gallon tax on gasoline and the push for higher minimum wage.

Fixed it for you

 

[Fernando]

Fixed it for you

Every year gas tax increases a cent or two and voters not aware or it's just a cent.
Throughout the decades, the gas tax is now over $1.60/gallon.

 

[OSU Beavers]

The consumer-price index, a measure of goods and services costs across the economy, fell slightly from May, dropping the year-over-year inflation rate to 3%, which was the lowest since June 2023.

Now Wall Street expects Powell to immediately drop interest rates by big bunches. I seriously double the Fed drops rates until after the election for no other reason than to avoid the appearance of impacting the election. Of course, food and gas are not in the core inflation figures, but I am hearing a lot of complaints about rapidly escalating prices for insurance. And despite corn and wheat prices to farmers falling, I see little evidence of more sales, larger packaging, nor lower prices for much of anything.

That 3% will be revised up after the election. The Fed will not drop rates until something breaks. Remember they wanted 7 million Americans unemployed by the end of 2023 and we are not quite there yet

America is on the brink of an unemployment fiasco

The number of unemployed Americans keeps rising. To keep the US job market from getting worse, the Fed needs to hurry up and cut interest rates.

www.businessinsider.com

 

[Terrel L. Shields]

That 3% will be revised up after the election. The Fed will not drop rates until something breaks. Remember they wanted 7 million Americans unemployed by the end of 2023 and we are not quite there yet

America is on the brink of an unemployment fiasco

The number of unemployed Americans keeps rising. To keep the US job market from getting worse, the Fed needs to hurry up and cut interest rates.

www.businessinsider.com

If they cut rates more than a modest quarter point or so, the flood gates will open, property prices will explode and everyone will be paying even higher mortgage payments while driving up their insurance and property taxes.

Can anyone tell me a single builder who has cut their prices? I mean lumber is lower than 2016. Sheetrock is slightly lower, steel is lower, total costs are down, labor is flat...so, why are builders literally pricing new housing 5% higher every few months?

 

[Joe Flacco]

When they start cutting the fed funds rate, long term borrowing rates are probably not going to move much. The expectation is that mortgage rates will stay around the same range it has been over the last year while shorter term rates will go down for construction loans which will help builders and developers.

 

[Joe Flacco]

I haven't been paying attention to the big national builders and their projects but some of the local developers got hammered on spec projects last year. Seems like spec activity is down pretty sharply. Still a lot of listings for proposed new construction but they are not going spec right now.

 

[Joe Flacco]

It looks like only a handful of developers got hammered in very specific locations.

 

[OSU Beavers]

If they cut rates more than a modest quarter point or so, the flood gates will open, property prices will explode and everyone will be paying even higher mortgage payments while driving up their insurance and property taxes.

Can anyone tell me a single builder who has cut their prices? I mean lumber is lower than 2016. Sheetrock is slightly lower, steel is lower, total costs are down, labor is flat...so, why are builders literally pricing new housing 5% higher every few months?

I do not see it that way. Buyers have too much debt and lenders are too cautious to extend credit going into the downturn.

Locked in homeowners WILL be more likely to list if their new rates are reasonable, but it will take a market correction to get new buyers to jump it.

Right now they have a wait and see instead of let's get in at the top of the market mentality.