Introduction: As we bid farewell to the month of May, it’s time to examine some crucial factors influencing inflation and gauge the progress we can anticipate in the upcoming June 13 release of the CPI inflation data. By analyzing various elements such as oil prices, used car prices, rental costs, employment figures, and the housing market, we can gain insights into the potential direction of inflation and its impact on the economy.
Oil prices and used car prices: In April, oil prices soared due to OPEC’s production cuts, but they have since subsided and are currently trading below $70/barrel. This decline in oil prices is expected to alleviate inflationary pressure in the upcoming CPI report. Additionally, used car prices, which experienced a significant surge in April, are now rising at a slower pace. Moreover, with seasonal adjustments during this time of year, the used car price index could even register a negative change, further reducing inflationary pressure compared to April.
Rental costs: Although rental costs have been slow to reflect the downward trend in real-time, the most recent data suggests they are starting to catch up. The May 10 inflation report revealed that new shelter costs were lower than those from the previous year. With current rents dropping rapidly, as indicated by Apartment List’s May Rental Report, we can expect rents to continue declining in the CPI report, thereby contributing to a decrease in inflation.
Replacing figures in the year-over-year calculation: Examining the year-over-year calculation, we note that the headline figure stood at 0.9% and the core figure at 0.6%. In April, both headline and core monthly inflation readings were 0.4%. These figures indicate a potentially favorable outcome for interest rates.
Employment figures: While inflation is gradually decreasing, the Federal Reserve seems to rely on lagging indicators rather than real-time data, potentially leading to mistakes in their decision-making. The stubbornness of the Bureau of Labor Statistics’ jobs data has caught the Fed’s attention, but real-time indicators suggest an inflection point. Job openings, particularly in the construction sector, have declined from their peak, while the leisure and hospitality sector has experienced shrinking employment. These trends may result in weaker job creation numbers.
Debt Ceiling Deal and the housing market: President Biden and House Speaker Kevin McCarthy have reached a debt deal in principle, alleviating fears of a default and receiving a positive response from the bond market. In the housing market, the Case Shiller Home Price Index indicates a rise in home prices, signaling a recovery from the recent inflection point. Although year-over-year appreciation may eventually turn negative, comparisons to the peak last year underscore the strength of the housing market, with projected appreciation of 5-6% for the full year of 2023.
Conclusion: As we eagerly await the release of the May CPI inflation data, various indicators suggest a potential decrease in inflationary pressure. Factors such as declining oil prices, a moderation in used car prices, decreasing rental costs, and changes in the employment landscape all contribute to this outlook. It remains to be seen whether the Federal Reserve will consider these indicators in their decision-making process and adjust their policies accordingly. Additionally, recent developments such as the debt ceiling deal and the recovering housing market provide further reasons for optimism about the overall economic trajectory in the coming months.
Itโs the most wonderful time of the year ๐โจ๐ Happy Holidays from The Herd!
โจ โThe strength of a family, like the strength of an army, lies in its loyalty to each other.โ โ Don Vito Corleone
This yearโs Bison Ventures holiday party celebrated mobster style through the decades. From timeless classics to bold looks, our team came together to honor another incredible year โ proving that loyalty and connection are at the heart of everything we do.
HAPPY HOLIDAYS from our Herd to yours! ๐
Special thanks to Stuart and @rach.m.crawford for hosting. ๐พ๐ฆฌ
Weโre thrilled to be recognized as one of the BEST PLACES TO WORK by the Phoenix Business Journal for the second year in a row! ๐โจ
A big thank you to the @phxbizjournal for this incredible honor and for celebrating workplace excellence in our community. And to our amazing teamโyour input, enthusiasm, and support make Bison Ventures more than just a workplace. Youโve created a community where collaboration and fun go hand in hand. ๐ฆฌโค๏ธ
Hereโs to celebrating together and building an even brighter future!
๐ Trying to time the market? Itโs not about chasing perfectionโitโs about preparing for opportunity. At Bison Ventures, weโre here to help you take the next step confidently, no matter what the market says.
Remember, the best time to make your move is when YOUโRE ready. Letโs plan together and make your homeownership goals a reality.
Contact Senior Loan Officer @brandipaucekloans to learn the advantages of being a buyer in our current market or strategize to make your homeownership goals a reality when the time is right for you! ๐ก
Industry leaders donโt just shape their companiesโthey elevate the entire field. Watching our CEO, Stuart Crawford, guide an insightful discussion at The Mortgage Collaborativeโs โ12 Days of TMCโ virtual conference was a proud moment for all of us at Bison Ventures.
Stuart reminded us of the power of networkingโnot just with potential sources of business, but across the industry, even among competitors. Itโs the same collaborative spirit that drives The Herdโs commitment to supporting local charities each quarter, giving back to the communities we serve. Together, we create innovative solutions and build stronger foundations for the future. Thank you to @mtgcoop for facilitating this incredible conversation. ๐ฅ
This Thanksgiving, weโre counting our blessingsโand at the top of the list are YOU. To our clients, partners, friends, and family: thank you for allowing us to be part of your story. Your trust and support mean everything to us.
From our Bison Ventures family to yours, we wish you a day filled with gratitude and joy. ๐ฆโจ
Our company is about to celebrate our 3rd anniversary, and we are ready to grow with people who align with our values.ย
We are proud of our culture and know that it takes a solid team to drive success in the mortgage industry.ย Thatโs why weโve built a platform designed to empower you โ whether youโre an originator scaling your business or an operations expert keeping it all running seamlessly.ย
Our award-winning culture is based on collaboration, FUN, support to scale, and accessible leadership, which allows you to focus on what you do best and enjoy doing it!ย
๐ฆฌ RUN WITH OUR HERD. EMPOWER YOUR FUTURE.
DM us to have a confidential conversation about life at Bison.ย
Attention agents! Join us for an exclusive tour of Moon Valley, one of Phoenixโs most desirable neighborhoods.
Known for its hiking trails, mountain views, prime location, and the iconic Moon Valley Country Club, this area offers the perfect blend of lifestyle and convenience your buyers are looking for. ๐
Seven homes ranging from $549,000 to $1,075,000 ๐ก
Register to attend on the MVHT app - link in bio ๐
What an amazing two days at the @nikolamotorcompany Wellness Fair, connecting with their fantastic team! We were blown away by the innovative facilities and applaud their mission to create a zero-emissions transportation world! ๐ ๐๐
Big thanks to our friend Shawn West, CuraFin Founder, for making this preferred corporate partnership possible. Shoutout to Loan Officer @mortgage_jules_ for sharing her mortgage expertise and helping attendees along their paths to homeownership! ๐ก