RE:RE:Inflation numbersTrue... real-estate would be the most affected by rising rates especially for those that want to buy or are not in a longer term fixed rate.
IMO it mostly affects the flippers of real estate who now will think twice before engaging in those markets compounded with lower prices. Rentals are still rising and is at its highest level.
Certainly will be interesting as I do not see any stability coming any time soon.
flamingogold wrote: True, one month's data does not determine market direction. But, let's not underestimate that we could be at least moving in the right direction. I would like to see at least 3 consecutive drops in the CPI # before we can rightfully claim that the FED is indeed winning the war on inflation. We've been so beat up since the year began that any sliver of good news is going to get the juices running.
Now, this applies ONLY to equity markets. Real estates markets, on the other hand, are still going to feel a lot of pain for a long time. Inflation is still way too high for the FED (and BoC by default since we follow the US), before there is any rate drop. And, when it occurs it will be miniscule. The era of cheap money is over and since real estate prices and interest rates have an inverse relationship, the price of housing still has room to fall. And then, it sits there for a few years.
clubhouse19 wrote: Nice to see the pause but most of the decline is due to medical care...used vehicles and clothing costs
Hardly a reason IMO for the rise in the market as we see it today.
A trader's paradise knowing fully well this will not really have any legs to hold.
Nevertheless, the high and lows in BBD and the banks today weretaken fully advantage of.
Certainly will give the bomber some tailwinds contrary to headwinds.