Market update 8/10/26: It is a buyers market

We just had a major inflation report drop today and there finally may be some encouraging news for the housing market. The latest CPI report which measures inflation shows that inflation cool slightly and now all eyes turned to tomorrow's PPI report. The consumer price index increased just 0.1 in July while annual inflation dropped from 3.5 to 3.4. Core inflation, which removes food and energy, also ease at 2.5. Why does all this matter in real estate? Because coolant inflation can help relieve pressure on the bond yields and ultimately mortgage rates. They're tied. Bond yields go up, rates go up, bond yields go down, rates go down. But one report doesn't determine where the rates go next. Tomorrow we get the producer price index or the PPI which measures inflation at the producer level and that will give the markets another important piece of inflation.

Meanwhile, buyers continue to gain negotiating power. They have more choices. Longer marketing times and price reductions means buyers can afford to be more selective than they could during the seller dominated market in the last few years. The CPI gave us some very encouraging news today. Tomorrow's PPI gives us the next piece of the puzzle. I'll be watching to what it does to the mortgage rates and ultimately for buyers and sellers. I'm Paco the realtor and that's your real estate market for this week

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