December’s Inflation Report #fhaloan #homebuyer #homeloans #interestrates #inflation

December's inflation report came out and the results were just as predicted, 0.3% inflation for the month of December. But when we dive in a little deeper, there's a lot of room for optimism. So we talked about before how shelter makes up the biggest piece of the CPI inflation report and that means home prices and rent values. And as we all know, it's all softened. So home prices are down 0.5% in the last month and rents are down 0.8% in the last month. But the shelter part of the CPI report takes months to catch up with itself and report that. So they're still reporting a 0.8% increase which is huge, like decades record increase in in shelter cost. But it's just not right. They just haven't caught up with the real numbers. This is still reporting back in the last summer and how expensive shelter was six months ago. So as soon as it catches up with itself and then that reflects on the CPI report, it'll kind of unlock it. We'll see inflation really start to hit the floor and mortgage rates will do the exact same in the next few months.