Housing inflation: Fed finding challenges in balancing supply, demand

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Home prices and rental costs are major components of the United States' inflation troubles. Between mortgage rates and supply-demand obstacles, Fed regulators are still forecasting deflationary trends in the future. American Banker Staff Writer Kyle Campbell sits down with Yahoo Finance to talk about housing data's involvement in recent inflation prints and the pressures homebuyers and renters are facing. 'If those prices are rising, it could lead to other related services increasing in price as well,' Campbell outlines. 'So it's not sort of the direct... cost of buying a home, but it's the things affiliated with it and how that... interacts with the broader economy.'

Home prices and rental costs are major components of the United States' inflation troubles. Betweenand supply-demand obstacles, Fed regulators are still forecasting deflationary trends in the future. American Banker Staff Writer Kyle Campbell sits down with Yahoo Finance to talk about housing data's involvement in recent inflation prints and the pressures homebuyers and renters are facing.

"If those prices are rising, it could lead to other related services increasing in price as well," Campbell outlines."So it's not sort of the direct... cost of buying a home, but it's the things affiliated with it and how that... interacts with the broader economy."Our goal is to create a safe and engaging place for users to connect over interests and passions.

 

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Fed: November rate hike is 'still in play,' strategist saysAugust's Consumer Price Index (CPI) print comes out this Wednesday, ahead of the Fed's September meeting next week. Comerica Wealth Management Chief Investment Officer John Lynch shares his thoughts on the Fed's path for interest rates based on inflation trends, forecasting a 50 basis point hike in the coming months, as well as what markets are expecting. 'The market discourse now is the Fed's done or close to done, and my message to investors is that the market is not done because for several reasons on the 10-year Treasury with market interest rates rising,' Lynch explains. Lynch notes how investors should position their portfolios on various Fed forecasts.
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