The Real Estate News Brief: Disappointing Inflation Report, Housing Share of the GDP, CA Judge Strikes Down Single-Family Lots Splits

In this Real Estate News Brief for the week ending April 27th, 2024… the Fed's preferred inflation report casts another shadow over a near-term rate cut, housing takes a bigger bite out of the GDP, and the court ruling that could prevent a controversial but popular law that allows single-family lot splitting in California. Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you want to know more about investing in rental properties, we are holding a live event on May 4th near the San Francisco airport. You can find out more about the event at newsforinvestors.com. And don't forget to click the subscribe button for this podcast! Now back to our News Brief… We begin with economic news from this past week. The all-important PCE inflation report came out and confirmed once again that it'll take a bit longer to get inflation back down to the 2% level. The Federal Reserve's preferred Personal Consumption Expenditure index shows a .3% increase in prices last month which increases the yearly rate of inflation from 2.5% to 2.7%. The core rate which excludes prices for energy and food was also up .3% with a yearly rate that was unchanged at 2.8%. The report makes it more likely that the Fed will not be cutting interest rates in the near future... Links: 1 - https://www.marketwatch.com/livecoverage/march-pce-report-hot-inflation-reading-forecasted-after-gdp-data/card/prices-rises-sharply-again-pce-shows-and-signals-progress-on-slowing-inflation-stalls-ybnTskvnrmraHcqNYnbW?mod=home-page 2 - https://www.marketwatch.com/story/sales-of-new-homes-rebounded-in-march-26f52aec?mod=economic-report 3 - https://www.marketwatch.com/story/pending-home-sales-see-unexpected-jump-in-march-despite-rising-mortgage-rates-cb4eaecc?mod=mw_latestnews 4 - https://www.freddiemac.com/pmms 5 - https://www.mortgagenewsdaily.com/markets/mortgage-rates-04252024 6 - https://eyeonhousing.org/2024/04/housing-share-of-gdp-surpasses-16-for-first-time-since-2022/ 7 - https://therealdeal.com/la/2024/04/25/la-court-nixes-california-sb9-allowing-home-lot-splits/