Inflation rose in February, leaving the Federal Reserve uncertain about future rate hikes.
Inflation is up yet again, largely due to rising gas prices and housing costs. For the last 12 months, the Consumer Price Index for all items increased by 3.2%, the U.S. Bureau of Labor Statistics reported. This is up slightly from the 3.1% increase last month. On a monthly basis, CPI increased 0.4 percentage points in February. This increase comes after the index rose by 0.3 percentage points in January. The shelter index and gasoline index are responsible for most of February’s CPI increase.
Inflation and mortgage rates are closely linked, which is why, despite lowering slightly last week, they’re still hovering close to 7%. As of March 7th, 30-year mortgage rates averaged 6.88%, according to Freddie Mac. This is down from the end of February when rates averaged 6.94%. The current average is still higher than it was last year at this time, when rates were 6.73%, on average. "Things are getting a little bit more healthy. It’s still a seller’s market, not a buyer’s market.
Despite economic data signaling a healthy U.S. economy, many Americans aren’t so sure. The Conference Board, which researches the current consumer mindset around the economy, reported that its consumer confidence index fell from 110.9 in January to 106.7 in February. The Conference Board's index had improved in recent months, but it took a dip last month as consumers once again worried about a recession.
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