|COMMERCIAL PROPERTY SALES SLOW AS RISING INTEREST RATES SINK DEALSCommercial real estate is showing the first signs of cooling in more than a year, disrupted by rising interest rates that are already causing some deals to collapse. Property sales were $39.4 billion in April, which was down 16% compared with the same month a year ago, according to MSCI Real Assets. The decline followed 13 consecutive months of increases.
MOODY’S FINDS ‘LITTLE EVIDENCE’ OF A HOUSING BUBBLE
While home prices are responding to higher mortgage rates, there is “little evidence of a housing bubble that is about to burst,” according to a new report from Moody’s Analytics. The lowest tier of the housing market appreciated by 17.2% in the past year alone, placing an extreme burden on first-time buyers.
INFLATION ROSE 8.6% IN MAY, HIGHEST SINCE 1981
Inflation accelerated further in May, with prices rising 8.6% from a year ago for the fastest increase since December 1981, the Bureau of Labor Statistics reported Friday.The consumer price index, a wide-ranging measure of goods and services prices, increased even more than the 8.3% Dow Jones estimate.
CONSUMER PRICES ROSE RAPIDLY IN MAY
Prices climbed 8.6 percent in the year through May, a reacceleration of inflation that makes it increasingly difficult for consumers to afford everyday purchases and poses a major challenge for the Federal Reserve and White House as they try to secure a strong and stable economy.