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Said Hamood - Mortgage Loan Officer - NMLS#1827048

An illustrative visual representation of the Consumer Price Index (CPI) data, graphically showcasing the modest 0.1% increase in November and a 3.1% rise from the previous year. Core CPI figures, excluding volatile elements, are also depicted, revealing a 0.3% monthly increase and a 4% rise year-over-year. The chart highlights key trends in inflation, offering a snapshot of the economic landscape.

Decoding the Latest Inflation Data: What It Means for Loans and Rates

December 12, 20232 min read

Hey there, fellow borrowers and investors! Said Hamood here, your friendly neighborhood loan officer in the beautiful state of Washington. Today, I want to break down the recent inflation data that just dropped on us and what it means for all things loans and interest rates.

Inflation in Check: Just as the Fed Ordered

So, the latest scoop is that the consumer price index (CPI) in November increased by a modest 0.1%, bringing the yearly rate to 3.1%. Now, if you're wondering, "Is that good or bad?" - well, it's pretty much right where the Federal Reserve had its eyes set. The market was expecting no gain and a yearly rate of 3.1%, and that's precisely what we got.

Core CPI: The Real MVP

Now, let's talk about the real star of the show – the core CPI. Stripping out the volatile food and energy prices, the core CPI rose by 0.3% on the month and 4% from a year ago. Why does this matter? Because it's holding steady and coming down just as expected, indicating some positive trends in the broader economy.

What Caught My Eye as a Loan Officer:

As someone knee-deep in the loan game, I've got my radar finely tuned to anything that could sway interest rates. Here's my take:

  1. Energy Prices Doing the Heavy Lifting: A 2.3% decrease in energy prices helped keep inflation in check. Gasoline fell by 6%, and fuel oil was down 2.7%. Good news for our wallets and the overall inflation picture.

  2. Shelter Prices Holding Strong: Shelter prices, a significant part of the CPI, increased by 0.4% on the month and were up 6.5% on a 12-month basis. That's something to keep an eye on, especially if you're in the real estate game.

  3. Fed Meeting on the Horizon: With the Fed meeting on the horizon, the report suggests a pause in rate hikes. The expectation is that rate cuts might be on the table in 2024. This aligns with what the market is anticipating.

My Take as a Loan Officer in Washington State:

In our neck of the woods, this data suggests a potential stabilizing of interest rates, which is generally good news for those in the market for a loan. However, we're not out of the woods yet. With the Fed meeting just around the corner, it's essential to keep a watchful eye on the signals they send about future rate movements.

Closing Thoughts: So, there you have it – a breakdown of the recent inflation data from your friendly neighborhood loan officer. As always, stay informed, stay engaged, and feel free to drop your thoughts in the comments. Let's navigate these financial waters together.

Cheers to financial wisdom and savvy borrowing!

Connect with me on social media for more updates and discussions.

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Said Hamood

Said Hamood has been an integral part of the mortgage business for over three years, finding genuine fulfillment in the work he does. Serving others brings him great joy, particularly in assisting individuals in realizing their lifelong dreams of homeownership. Whether you're taking the plunge into homeownership for the first time, looking for your next home, or considering a strategic refinance, Said is genuinely excited about being a part of your journey. In his dedication to simplicity, Said believes that every client deserves a straightforward and stress-free home financing process. He invests the time to guide individuals through each step of the mortgage journey, addressing questions, concerns, and providing regular updates on the loan's status. His primary objective is to ensure clients feel confident that the mortgage process is moving seamlessly towards a successful closing. When it comes to tailoring home financing solutions, Said starts by actively listening to the unique needs and aspirations of his clients. Through meaningful discussions about goals and priorities, he collaborates to identify the product that best aligns with their financial needs. Offering a diverse range of loans, including conventional, jumbo, FHA, and VA, Said works alongside clients to craft a personalized mortgage plan, ensuring a tailored approach to their specific circumstances.

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Said Hamood | NMLS #1827048 | Barrett Financial Group, L.L.C. | NMLS #181106 | 275 E Rivulon Blvd, Suite 200, Gilbert, AZ 85297 | TX view complaint policy at www.barrettfinancial.com/texas-complaint | WA MB-181106 | Equal Housing Opportunity | This is not a commitment to lend. *All loans are subject to credit approval. | mlsconsumeraccess.org/EntityDetails.aspx/COMPANY/181106