Episode 48: Inflation is easing but remains sticky, housing supply is tightening, credit concerns are growing, and mortgage rates are a persistent challenge.
- Consumer prices rose 0.2% in April, though the headline index eased to 2.3% growth year-over-year, the slowest pace since early 2021.
- Producer prices fell 0.5% in April, the deepest monthly drop since 2020, driven by declining service margins.
- Existing home sales dipped 0.5% in April, staying 2% below year-ago levels; median home prices rose 1.8% to $414,000.
- Mortgage applications fell 5.1% in mid-May as 30-year rates climbed to 6.92%, affecting both purchase and refinance activity.
- Moody’s downgraded the U.S. credit rating to Aa1 due to rising debt and interest costs, potentially tightening capital markets.
- The Conference Board’s Leading Economic Index fell 1% in April, its deepest drop in over a year.
- Weekly unemployment claims hit 227,000, though the four-week average is at its highest since late 2021.
- The labor market is holding, though signs of strain are emerging.
For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.
