Import prices turned up in June
U.S. import prices rose in June, a sign that tariff-driven costs may be starting to spread through the economy even though broader inflation has cooled. Prices for goods coming from China hit their highest level since 2008. Higher costs for capital goods and consumer products more than made up for cheaper food and fuel. Businesses are paying more for imported goods, which raises the question of whether shoppers will face more price increases in the coming months.
The report also pointed to the AI buildout pushing prices up. Costs rose for computers, peripherals, and semiconductors.
Home affordability keeps sliding
Home buyer affordability fell for a fifth month in a row in June. High mortgage rates and high home prices are still squeezing buyers. More homes are coming onto the market, yet borrowing costs keep many would-be buyers, especially first-time buyers, on the sidelines.
The median monthly mortgage payment is now about $2,290. That is roughly $100 more than a year ago, holding affordability near its weakest level in decades.
The slide started in January. Back then the median home price was just under $400,000, the average mortgage rate was about 6.19%, and a buyer needed an income of about $93,000 to qualify. By June the median price of a single-family house reached $446,400, up nearly $50,000. The average rate climbed to 6.57%, and the income needed to qualify rose to at least $109,000. Until mortgage rates drop in a real way, affordability will stay one of the biggest problems facing the housing market.
The week ahead
A heavy run of earnings is coming. Reports are due from D.R. Horton in the housing space, 3M, General Motors, GE Vernova, AT&T, IBM, Southwest, American Airlines, Intel, and Deckers. Tesla and Alphabet report Wednesday afternoon.
