July Monthly Insights: Inflation in May • Housing Market • Life Tip
1. Inflation in May: 2.4% 📉
In May, prices rose just 0.1%, making the year-over-year inflation rate 2.4%, which was lower than many experts expected.
Some people thought the trade war would make inflation jump higher, but that hasn’t happened. Instead, inflation is moving closer to the Federal Reserve’s 2% goal. Consumer spending was soft in May, especially on travel and fun activities. It’s the second month of slow spending, so everyone’s watching June’s data to see if this is a new trend or just a short pause.
2. Housing Market Cools Off 📉
High mortgage rates (around 7%), more homes for sale, and still-high prices have cooled down U.S. housing. In March, the Case-Shiller Home Price Index fell for the first time in over two years after adjusting for seasonal changes—and it fell again in April. Home builders are growing pessimistic, and most experts now expect home-price growth of only 0–1% over the next year.
Living in Potomac, I even saw a nearby house drop from $1,665,000 to $1,350,000—a nearly 20% discount! The seasonally adjusted average single-family home value in Rockville (20852) is $771,948—a 0.09% decline, marking its first monthly drop since March 2023. Let me know if you’d like to see data for other ZIP codes!
3. Life Tip: Small Changes, Big Impact 💡
I recently worked with a retired couple who earn good rental income. They wondered why they still didn’t have much saved, even though they live simply. We looked at their regular costs:
🛠️ Property maintenance
🏡 Home insurance
📄 Several whole-life insurance policies
🏥 Long-term care insurance
💵 A few annuities
They said, “We bought them because friends sold them to us and they sounded good at the time.”
If they have a plan instead of products, they’d save more in their retirement accounts—that would solve many of their problems! Sometimes tiny costs add up over time. A small habit change today can become a big life change tomorrow.