Thursday, July 12, 2018

Housing Costs Decelerating; Construction Costs Rising; Rates Can't Find Inspiration

While the Labor Department's Employment Situation Report for June showed wages plodding along at a 2.7 percent annual increase, unchanged from May, it is still being outstripped by rising costs, especially for housing. Today's Consumer Price Index (CPI) report shows consumer costs overall were up 2.9 percent with the shelter portion rising 3.4 percent over the last 12 months. Shelter is one of the categories in the CPI's "market basket," the goods and services that the Bureau of Labor Statistics (BLS) considers necessary for day-to-day living. The CPI does not include housing units which it views as capital or investment rather than consumption items. Shelter is viewed as a "service" provided by that investment and is thus a consumption item. The cost of shelter is broken down into two components

from
http://www.mortgagenewsdaily.com/reports/newsletter/2018/7/12/3449

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