Consumer sentiment slumped again in March, hitting its lowest level since August 2011, according to the University of Michigan.  High inflation, volatile oil prices, geopolitical unrest and now rising interest rates, have left consumers with a bitter taste about the state of the US economy.  Consumers are battling the highest inflation since 1982 and with it, a barrage of rising costs: Mortgage rates increased again this week, adding an average of $300 a month for homebuyers. Gas prices are still at record highs in parts of the country, and the latest Consumer Price Index showed most essential goods are up by 7.9% year on year. 32% of all American consumers expected their overall financial position to worsen in the year ahead, the highest recorded level since the surveys started in the mid-1940s.

After cooling off ever so slightly toward the end of last year, home price gains reaccelerated in January.  Home prices nationally rose 19.2% year-over-year in January, up from 18.9% in December, according to the S&P CoreLogic Case-Shiller Index.  Phoenix, Tampa and Miami saw the biggest annual gains at 32%, 31% and 28%. Sixteen of the 20 cities reported higher price increases in the year ending January 2022 versus the year ending December 2021.  Washington, D.C., Minneapolis and Chicago saw the smallest annual gain, although they were all still up double digits from a year ago.  Tight supply and strong demand appear to be outweighing rising mortgage rates, which would usually take some of the heat out of housing.