The US Bureau of Labor Statistics released the Consumer Price Index (CPI) report for August, which highlighted the persistent nature of shelter cost inflation, which rose 5.2% compared to last year. To discuss the outlook on housing affordability, Mortgage Bankers Association President and CEO Bob Broeksmit joins Wealth!

Broeksmit explains that home prices continue to climb due to "a stubborn supply gap," with fewer houses available than Americans need. He notes "that's why you see housing prices increasing faster than the CPI data." However, Broeksmit suggests that factors such as cooling mortgage rates may provide some relief to this affordability crisis for Americans.

Regarding the Federal Reserve's possible interest rate cuts, Broeksmit observes: "We've already seen in mortgage rates anticipation of the Fed cuts coming," indicating that these expected cuts are already priced into current mortgage rates.

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This post was written by Angel Smith