Shelter prices rose 0.4% in May, according to key inflation data from the latest CPI (Consumer Price Index) print, rising 5.4% year-over-year. As housing is a significant contributor to US inflation, does this data shift the tone around the US housing market and the Federal Reserve's own interest rate policies?

Zelman and Associates CEO Ivy Zelman has found that "multi-family rents are re-accelerating and single-family rents are firming," commenting on how the Fed could be interpreting this fresh inflation data.

"The real weakness in the market has been pronounced in existing home turnover, which in fact is starting to, what we thought was bottoming and improving is actually starting to turn more concerning and declining, given the backup and rates and affordability constraints," Zelman explains.

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This post was written by Luke Carberry Mogan.

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