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Inflation is hurting everyone, especially those who need to drive more frequently such as Realtors®. Gasoline now costs 49% more than it did a year ago and 130% more than two years ago. Airfare and hotel room rates have risen 38% and 22%, respectively, year-over-year, thereby putting a dent in summer travel plans for some Americans. Electric car drivers are feeling less pain, comparatively, with electricity prices up by 12% annually. Food prices are 10% higher than last year, quickly offsetting wage increases and the 5.9% gain in Social Security checks.
Rents are rising by 5%, though this could be understating some of the new leases. Rising rents and home prices (not part of CPI Inflation) have caught up with multiple years of housing underproduction of single-family homes and apartments.
High inflation means many more interest rate hikes by the Fed. The mortgage market may have already priced this in, so most of the increases in mortgage rates may have already occurred with only small changes in the upcoming months.
