November CPI Data released, Inflation cools off
Core CPI (Consumer Price Index) and CPI metrics were released on Tuesday. Both showed that prices rose less than expected in November, but were still up 7.1% from a year ago. Analysts were expecting the year-over-year metric to hit 7.3%. The fact that it came in lower is a sign that inflation may have peaked in the US.
The consumer price index was up only 0.1% month-over-month. That came in much lower than 0.3% estimate.
How did the mortgage rate market react?
According to experts, today’s CPI was the biggest market mover that has ever been recorded. From, stocks to treasuries to mortgage-backed securities, everything was moving in a positive direction after the announcements yesterday morning.
The national average for a 30-year, fixed rate mortgage ended the session at 6.28%, down 0.11% from Monday.
Stocks pulled back in the afternoon, but mortgage rates remained lower at the end of the Tuesday trading session.
NAR releases its 2023 existing home sales forecast
The National Association of Realtors announced its 2023 outlook for existing home sales on Tuesday. They expect the existing housing market to reach 4.78 million homes sold in the US in 2023. They also predicted that Atlanta, GA will be the top housing market, and home prices will remain stable for most of the year. Chief Economist for NAR, Lawrence Yun, stated, “Half of the country may experience small price gains, while the other half may see price declines. However, markets in California may be the exception, with San Francisco, for example, likely to register price drops of 10%-to-15%.”
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