Inflation is back in the headlines, but the story is more nuanced than the numbers suggest.
Consumer prices rose
4.2% over the past year, the highest annual increase in nearly three years. At first glance, that sounds like bad news for anyone hoping mortgage rates would fall quickly.
But here's where it gets interesting.
A large portion of that increase came from higher energy prices.
Core inflation
which excludes food and energy and is one of the Federal Reserve's preferred indicators rose
2.9%, much closer to its long-term target. In other words, while inflation hasn't disappeared, the broader economy isn't showing signs of runaway price growth.
What does this mean for real estate?
Mortgage rates may stay elevated a little longer than many buyers hoped. But higher rates haven't eliminated demand they've simply made buyers more selective. Many are still actively watching the market, waiting for the right home, better financing opportunities, or both.
One thing I've learned over the years is this:
National headlines create conversations, but local markets create opportunities.
Every buyer and seller has different financial goals, timelines, and circumstances. That's why the best real estate decisions aren't driven by fear or headlines they're driven by good data, smart planning, and understanding your local market.
The economy will continue to change. The key isn't trying to predict every headline it's knowing how to navigate them when they arrive.
