In June, the consumer price index (CPI) fell by 0.1% from May, bringing the annual inflation rate to 3%, the lowest it has been in over three years.
This drop in inflation was mainly due to a 3.8% decrease in gasoline prices, which balanced out small rises in food and housing costs. Because of this slowdown in inflation, real average hourly earnings went up by 0.4%.
This positive inflation report has led to increased expectations that the Federal Reserve will cut interest rates in September. After the CPI peaked above 9% in June 2022, the Fed raised interest rates to control the rapid price increases. Now, with inflation cooling down, traders are predicting multiple rate cuts by the end of the year. Additionally, fewer people are applying for unemployment benefits, indicating that the job market is getting stronger.
All this info is great for the fall real estate market, lets all keep our fingers crossed that rates decrease for everyone's housing affordability!
As always, if you have any questions or would like to discuss any of the changes that have been made, please do not hesitate to ask me! Jessica Sternberg Jessica@DawnRushton.com 206.459.1970 | 
