A Quick Look at the Economy: Hang in There!
The economic news this past week was a mixed bag, to be honest. It’s as if the economy can’t decide whether it wants to calm down or panic.
First, the big headline: inflation is cooling off more than experts expected! Prices are still rising, but the pace is slowing down—especially for things like shelter. The delayed CPI report confirmed this, suggesting that the Fed might cut rates in its upcoming meeting.
However, we can’t forget the backdrop of the ongoing government shutdown. This political mess means a lot of the usual data is missing, and it’s likely contributing to the softness we’re seeing in the job market, with jobless claims ticking up. It also means we won’t receive the next official data round until December, which makes it challenging to make decisions.
What Else Is Going On?
- CEO Vibes: Most CEOs aren’t panicking about a recession, even if their confidence dipped a little. They’re actually looking forward, mostly excited about how AI is going to shake things up and change how their companies work.
- Home Stress: On the home front, many people are feeling the pinch of rising insurance costs and are concerned that they may be underinsured.
- Seller Success: If you are selling, good news: agents are still your best bet—they help sellers pocket about $6,255 more on average and keep the process much less stressful.
The takeaway? While the government shutdown adds significant uncertainty, with inflation easing and business leaders holding onto their optimism, there’s a solid chance for gradual improvement once the data blackout is lifted.
Source: California Association of REALTORS®