Inflation isn't going away too soon.

Big news today is the real estate sales judicial settlement. This is providing an opportunity to change the paradigm regarding real estate sales as well as lowering the cost and price of housing. The United States has by far, one of the highest real estate agent fees in the world. Typically, today or yesterday the real estate agent represented the seller and as far as cost, the buyer.  The “buyer agent” was actually paid through the commission charged to the seller and even though the commission was negotiable. The way it worked was the incentive for the seller agent as well as the buyer agent was to sell the real estate for the highest price possible. This was also a benefit for the seller as well. Several groups sued real estate sellers' groups, the largest of which is the National Association of Realtors that controls the multiple listing service. When you sign an agreement to sell your home, included in the signed agreement is a commission for both the seller and buyer agent limiting the ability of the buyer to negotiate the commission.  If the settlement agreement is approved by a judge the buyers of real estate will be free to negotiate the buyer agent commission or in fact, waive using an agent at all.  It will open up alternatives in regard to how real estate is bought and sold and could lead to a mass exodus of real estate agents from their profession.  So far, the outcome is a bit unclear with various predictions by analysts but only time will tell.  However, the settlement has not changed the interest rate environment that has the bigger impact on the housing/real estate market currently.  

Impacting interest rates this week were a couple of data points that led markets to believe any decline in interest rates could be delayed.  This is despite Fed chairman Jerome Powell stating to Congress that the Fed will be lowering rates this year.  Consumer and producer inflation figures came in higher-than-expected causing US Treasury rates to inch higher this week as well as raising consumer expectations of continued inflation.  This week provided reminder that inflation isn't going away anytime soon

With the stock market still close to record levels as well as historically high values based on past history, this week was not a good one for market averages.  

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