MetroIntelligence Economic Update by P. DUFFY
Producer Price Index slips to 0.7 growth in August, but annual rate highest since late 2010
The Producer Price Index for final demand increased 0.7 percent in August, and were up 8.3 percent for the 12 months ended in August, the largest advance since 12-month data were first calculated in November 2010. Prices for final demand less foods, energy, and trade services moved up 0.3 percent in August, and rose 6.3 percent year-on-year, the largest advance since 12-month data were first calculated in August 2014.
Federal Reserve Beige Book: Economic growth downshifted as Delta variant rose
Economic growth downshifted slightly to a moderate pace in early July through August. The stronger sectors of the economy of late included manufacturing, transportation, nonfinancial services, and residential real estate. The deceleration in economic activity was largely attributable to a pullback in dining out, travel, and tourism in most Districts, reflecting safety concerns due to the rise of the Delta variant, and, in a few cases, international travel restrictions.
Mortgage payments rose 67 percent faster than rents year-on-year through August
Nationwide, average monthly rents increased 9% over the past year in August. However, the national median monthly mortgage payment for homebuyers rose 67% faster than rents during the same period. This is despite mortgage interest rates falling back to near-record lows. This is the seventh consecutive month that growth in median mortgage payments for new homebuyers has outpaced that of rents. However, in August, growth in rents were speeding up while growth in mortgage payments were slowing.