by Kristin Schwab
Market Place
Inflation cooled even more than expected in August. The personal consumption expenditures index — released Friday — clocked in at 2.2%, which is down from 2.5% in July. Still, one part of inflation that’s proven to be super sticky is housing.
Housing inflation is stubborn because there’s not enough housing, per Susan Wachter, a professor of real estate at Wharton.
“Demand continues and the supply is constrained,” she said.
That has to do with housing stock and interest rates. Rates have come down, but not enough for homeowners to sell. Wachter said the average existing rate is around 4%.