Podcast - 089: August Consumer Price Index and it's impact on rent, housing, and mortgage rates

In this episode, realtor Anthony Luevanos and lender Angel Luevanos cover the most recent Consumer Price Index and its impact on rent, housing, and mortgage rates.

The consumer price index came in at 8.5% through July, which was lower than the expectation of 8.7%! In June, we had a 9.1% reading, which signals we may have hit our inflation peak last month!

The Federal Reserve has raised rates aggressively recently, with a 0.75% hike in June and July. 

However, at the same time, mortgage rates have slowly begun to decrease. Mortgage rates peaked in early June, hitting over 6% but have since reduced to the low 5%.

Therefore, there is an opportunity for buyers to lock in rates on the lower end if they are in close contact with their lenders and aware of the volatility.

Rents increased 0.7% since last month; meanwhile, Southern California just saw its most significant price drop in years. 

With less buyer demand, homes sitting on the market longer, and prices decreasing, sellers are becoming more and more willing to negotiate.

We haven’t seen a better time to negotiate buyer terms in years.

Trying to time a real estate bottom or stock market bottom is nearly impossible. If you plan to hold on to your property for at least ten years, your home value will likely double regardless of when you buy it.

Southern California has reliable home appreciation; it just takes 7% annual appreciation to see home values double in ten years. 

The Los Angeles County median sales price was $325,000 in July 2012; in July 2022, it’s now $850,000.

Since 2017, Los Angeles County home appreciation has been 8.71%

*using a rolling 12-month average
*we cannot guarantee future home values