This is a YouTube video titled "MORTGAGEIPDATE11/13 OCTOBER CPI INFLATION REPORT" containing a financial commentary recorded in late November 2024. The speaker analyzes the October Consumer Price Index (CPI) inflation data, discussing inflation rates, the Federal Reserve's targets, and the impact of housing and rent prices on overall inflation trends heading into 2025.
It's the biggest day of the month again for Morgan Trades. The October CPI inflation report came in. Let's unpack it. The expectation was a 0.3% monthly increase in inflation and it came in at 0.3%, spot on. So there wasn't a major reaction from the market. It got a little better and now it's kind of giving up those gains midday. Technically, it came in at 0.28%, but they round to the nearest whole number. But if we dive into the details, that's where I get a little bit more optimistic for the future. The Fed's goal is to get to 2% inflation. Right now, we're at 2.6% for the year. However, if you strip out house prices and rent, which makes up about half of the overall inflation report, it's by far the biggest piece of the pie. If you take those away, we would be at 2.1%. So most all inflation is actually under control. Focus now is just on rent prices and house prices. As we get more inventory, house prices should start to continue to ease. So that's going to be the next shoe to drop. As more houses become available, house prices gets better, which also makes interest rates get better. So be on the lookout for that going into 2025.
