Rocket Fuel Newsletter – 1/20/2025

This week’s edition highlights two positive signs that inflation is under control, insights from the Federal Reserve and a recap of homelessness in 2024, including efforts being made to address the issue.

Fuel up! 🚀  

Inflation reports increase less than expected.

Both the Producer Price Index (PPI) and the Consumer Price Index (CPI) came in lighter than expected, boosting markets and giving some relief to the bond market.

PPI, which tracks wholesale prices, rose 3.3% from the previous year, below the expected 3.5%. CPI, which tracks changes in consumer prices, rose 2.9% year-over-year, marking the first deceleration in growth since July.

While both reports beat expectations, it is unlikely to influence the interest rate decision of the Fed at their upcoming meeting at the end of January. Markets believe it is almost a certainty that they will keep rates unchanged.

Fed Beige Book points to moderate growth

The Federal Reserve’s Beige Book is a snapshot of economic conditions across each of the 12 Fed districts. The most recent release showed economic activity that increased ‘slightly to moderately’. Consumer spending, boosted by stronger than expected holiday sales, was reported in most districts.

On the downside, high costs for both materials and financing were a hinderance to construction and high mortgage rates held back residential real estate.

Read the full book here.

Homelessness in 2024

Homelessness continues to be a significant challenge in the United States, and recent data from the Department of Housing and Development (HUD) offers a clearer understanding of the issue and ongoing efforts to address it. Let’s dig into some of the key points in Part 1 of HUD’s 2024 Annual Homelessness Assessment Report.

Record-breaking homelessness numbers

Over 771,000 people were experiencing homelessness on a single night in 2024, equating to about 23 of every 10,000 people in the U.S. This is the highest number ever recorded and represents an 18% increase from 2023. This highlights the urgent need for comprehensive solutions to tackle this critical problem.

Notably, people in families with children saw the largest increase in homelessness in a single year from 2023 to 2024, with 39% more families experiencing homelessness.

Age played a significant role

Children under the age of 18 represented the age group with the largest increase in homelessness between 2023 and 2024. From the previous year, this demographic saw a 33% increase in homelessness.

The data also revealed that around 20% of people experiencing homelessness in 2024 were aged 55 or older. Withing this group, almost half were unsheltered, living in places not meant for human habitation.

The role of race

Race remains a key factor in homelessness. Those identifying as Black, African American, or African continued to be overrepresented in the homeless population in 2024. While making up only 12% of the total U.S. population, they made up 32% of those experiencing homelessness. This is a slight improvement from 37% the previous year.

Positive news for veterans

Encouragingly, the report highlights that homelessness among veterans has reached its lowest on record, decreasing nearly 8% since 2023 (and 55% since 2009). This progress is attributed to targeted programs like HUD-Veterans Affairs Supportive Housing (HUD-VASH), which combines HUD housing vouchers with VA support services. Similar efforts are being applied to youth homelessness, emphasizing collaboration between federal, state, and local organizations to provide tailored resources and care.

The report also sheds light on environmental and systemic challenges exacerbating homelessness – rising housing costs, economic disparities, natural disasters and the lingering effects of the pandemic. Department of Health and Human Services Secretary Xavier Becerra recently said, “Homeless people need more than temporary shelter. They must have access to a comprehensive set of services that connects them to housing they can afford and maintain over the long term.”

Organizations and governments nationwide are stepping up to address these challenges. From local programs to federal initiatives such as the HUD’s Youth Homelessness Demonstration program (YHDP), there’s a growing emphasis on reducing barriers to stable housing. By prioritizing accessibility and long-term support, these measures aim to empower individuals and families to regain stability and independence.

As America’s largest mortgage lender, Rocket Mortgage believes home is essential. The Rocket Community Fund supports this vision by working with community partners to break systemic barriers to safe and stable housing. Since 2018, the Rocket Community Fund has been a lead partner of Built for Zero, a movement of more than 90 communities working to measurably and equitably end homelessness.

Learn more here.

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