A US housing recovery has started, and this is a problem for the Fed because home prices have a weight of 40% in the CPI basket, and rising house prices will make inflation more sticky and make it more difficult for the Fed to get inflation down from currently 5% to the FOMC’s 2% inflation target. Our US housing outlook is available here.
![US Housing Outlook: Housing recovery making inflation more sticky](https://apolloacademy.com/wp-content/uploads/2023/04/0430_chart1-1024x576.jpg)
![Traffic of prospective homebuyers starting to improve likely driven by solid employment growth, high wage growth, and plenty of excess savings](https://apolloacademy.com/wp-content/uploads/2023/04/0430_chart2-1024x576.jpg)
![Confidence improving for homebuyers and homebuilders](https://apolloacademy.com/wp-content/uploads/2023/04/0430_chart3-1024x576.jpg)
![Home sales starting to recover](https://apolloacademy.com/wp-content/uploads/2023/04/0430_chart4-1024x576.jpg)
![Average number of offers received per sold property is starting to recover](https://apolloacademy.com/wp-content/uploads/2023/04/0430_chart5-1024x576.jpg)
![Housing affordability at 2007 levels but starting to bottom because of solid job growth, robust wage growth, and excess savings in the household sector](https://apolloacademy.com/wp-content/uploads/2023/04/0430_chart6-1024x576.jpg)
![Mortgage refi applications starting to recover](https://apolloacademy.com/wp-content/uploads/2023/04/0430_chart7-1024x576.jpg)
![Despite high prices, homebuyer sentiment improving](https://apolloacademy.com/wp-content/uploads/2023/04/0430_chart8-1024x576.jpg)
![Homebuyer sentiment about mortgage rates and credit conditions getting better](https://apolloacademy.com/wp-content/uploads/2023/04/0430_chart9-1024x576.jpg)
![Active listings still at very low levels, very low inventory](https://apolloacademy.com/wp-content/uploads/2023/04/0430_chart10-1024x576.jpg)
![Fewer people listing their home for sale in a down market](https://apolloacademy.com/wp-content/uploads/2023/04/0430_chart11-1024x576.jpg)
![With the housing market recovering, the anticipated strong decline in OER may never happen](https://apolloacademy.com/wp-content/uploads/2023/04/0430_chart12-1024x576.jpg)