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The Personal Consumption Expenditures (PCE) price index rose 0.4%

By Mark Huffman of ConsumerAffairs

• The Federal Reserve's preferred inflation gauge accelerated in May, with the Personal Consumption Expenditures (PCE) price index rising 4.1% from a year earlier, its highest annual rate in three years.

• Consumer spending and personal income both increased 0.7% during the month, suggesting households continue to spend despite higher prices.

• The combination of stronger inflation and resilient consumer demand is likely to reinforce expectations that the Fed will keep interest rates elevated or even consider additional rate hikes.

Theres growing evidence that inflationary pressures are building in the economy. The Federal Reserve's preferred measure of inflation accelerated in May, providing fresh evidence that the U.S. economy remains surprisingly resilient even as higher prices continue to challenge policymakers.

The Commerce Department reported this week that the Personal Consumption Expenditures (PCE) price index rose 0.4% in May from the previous month and 4.1% from a year earlier, up from 3.8% in April. Excluding the volatile food and energy categories, the core PCE price index increased 0.3% during the month and 3.4% over the past year.

That number is important because the PCE index is closely watched, and is the inflation measure the Federal Reserve relies on most heavily when setting monetary policy. The central bank has a long-term inflation target of 2%, which suggests it wont cut interest rates anytime soon.

However, consumers are still spending

The inflation report was accompanied by signs that consumers remain willing to spend despite higher borrowing costs and elevated prices.

Personal income rose by 0.7% in May, while disposable personal income also increased 0.7%. Consumer spending climbed 0.7%, or $156.1 billion, with gains in both goods and services. After adjusting for inflation, real consumer spending increased 0.3%.

The increase in spending was led by services such as healthcare, housing and utilities, transportation, and financial services, while purchases of goods also rose, according to the Bureau of Economic Analysis. Farm income and higher employee compensation contributed to the increase in personal income.

Mixed bag

In short, the report paints a mixed picture of the economy.

On one hand, rising incomes and continued consumer spending suggest households remain financially resilient, helping to support economic growth. Consumer spending accounts for roughly two-thirds of U.S. economic activity, making it a key driver of the nation's economy.

On the other hand, the acceleration in inflation complicates the Federal Reserve's efforts to return price growth to its 2% goal. Economists noted that higher energy prices, along with continued increases in healthcare, transportation, and financial services costs, contributed to May's inflation pickup.

The stronger-than-expected economic backdrop has prompted investors to reassess the outlook for interest rates. Earlier expectations that the Fed might lower rates this year have faded as inflation has remained stubbornly above target while consumer demand continues to hold up.

Spring housing market fizzles as homeowners hold back listings

By Mark Huffman of ConsumerAffairs

• The spring home-selling season ended on a subdued note as fewer homeowners put their properties on the market, reflecting caution among both buyers and sellers.

• High mortgage rates, record home prices and economic uncertainty are discouraging new listings, even as buyers gain more negotiating power.

• Housing experts say the slowdown could keep inventory from rising as quickly as expected, limiting relief for prospective buyers despite softer demand.

Record-high home prices that have risen much faster than the rate of inflation is one reason that its hard to buy a home. But inventory levels is another.

When home sales slow, you might think the selection would improve, but that hasnt happened this spring. The data show that homeowners increasingly decided against listing their homes amid stubbornly high borrowing costs and lingering economic uncertainty.

A new report from Redfin found that the pace of new home listings slowed significantly heading into summer, suggesting many would-be sellers are choosing to wait rather than enter a market where buyers remain cautious. The slowdown comes even as the median U.S. home sale price has climbed to a record high, a combination that has left both sides of the market reluctant to make a move.

Sluggish sales in 2026

The spring market is typically the busiest time of year for residential real estate, but 2026 has been marked by sluggish sales activity. Elevated mortgage rates continue to make monthly payments difficult for many prospective buyers, while homeowners who locked in ultra-low mortgage rates during the pandemic remain hesitant to trade them for loans carrying much higher interest rates.

"Homeowners are sitting on the sidelines because buyers are sitting on the sidelines," Redfin said in its analysis, noting that many sellers are unwilling to test the market if they believe they may have to negotiate on price or offer concessions.

The cooling in new listings follows several weeks of weakening demand indicators. Pending home sales have softened, mortgage purchase applications have eased, and buyer activity has remained below historical norms despite modest improvements in home touring activity.

Still, there are more sellers than buyers

The result is a market that is offering buyers more leverage than they have enjoyed in years.

Redfin estimates there are substantially more sellers than buyers nationwide, forcing many homeowners to compete by offering concessions such as paying closing costs, covering repairs or buying down buyers' mortgage interest rates. A separate Redfin analysis found nearly half of recent home sales included some form of seller concession.

Fewer homeowners appear willing to list their properties. Many remain reluctant to sell because doing so would require purchasing another home at today's higher financing costs.

Others are concerned that economic uncertainty could make it harder to achieve their desired sale price.

That dynamic has prevented the large increase in housing inventory many economists expected earlier this year. While active listings have risen compared with last year, the decline in new listings could slow further inventory gains during the summer selling season.

Reloading is common among scammers who often target victims a second time

By Mark Huffman of ConsumerAffairs

• Scam victims are often targeted again. Fraud experts say "reloading" where criminals repeatedly contact previous victims is a well-established tactic.

• Victim information is valuable. Scammers buy, sell, and share lists of people who have already fallen for fraud because they are viewed as more likely to respond again.

• No one knows exactly how common it is. While researchers agree repeat victimization is widespread, there are no reliable national statistics measuring how many scam victims are targeted a second time.

Falling victim to a scam can be devastating, but for many consumers, the ordeal doesn't end with the first financial loss.

Consumer protection agencies, researchers, and law enforcement say many victims are targeted again in a practice known as "reloading." The tactic involves criminals returning to previous victims or selling their contact information to other fraudsters who then attempt to steal even more money.

One of the most common forms of reloading is the recovery scam. After someone loses money to an investment, romance, or cryptocurrency scam, they may receive a call, email, or social media message from someone claiming they can recover the lost funds. The catch is that the victim must first pay an upfront fee, taxes, or legal costs. Once that money is sent, the supposed recovery agent disappears.

Other victims are lured into new fake investment opportunities, additional sweepstakes or prize , or another version of the original fraud. In some cases, the same criminal organization contacts the victim again. In others, the victim's name and contact information have been shared with unrelated scam networks.

Fraud investigators say these so-called "sucker lists" have long been a staple of organized fraud operations. They contain names, phone numbers, and notes about previous victims, making them valuable commodities among criminals who believe someone who has been deceived once may be more likely to respond again.

Surprising lack of data

Although reloading is widely recognized, there is surprisingly little data showing exactly how often it occurs. Federal agencies such as the Federal Trade Commission (FTC) and the FBI track fraud complaints and financial losses, but they do not routinely publish statistics showing how many victims are later targeted again.

Researchers have reached a similar conclusion. Studies have identified a group of "chronic" fraud victims who suffer repeated financial losses over time, but experts caution that there is no reliable nationwide estimate of the percentage of scam victims who experience repeat targeting.

The lack of precise numbers reflects the difficulty of measuring the problem. Many victims never report fraud, subsequent may involve entirely different criminal groups, and victims often do not realize that a later solicitation is connected to the original scam.

Even without a definitive percentage, consumer advocates say the message is clear: anyone who has lost money to a scam should be especially wary of unsolicited offers to recover funds, make a new investment, or claim a prize. Rather than being left alone, previous victims often become some of the most attractive targets for the next scam.

Many buyers are seeing little reason to enter the market

By Mark Huffman of ConsumerAffairs

• The average rate on a 30-year fixed-rate mortgage rose to 6.49% this week, up slightly from 6.47% last week, but below the 6.77% average a year ago.

• Mortgage rates have remained in a narrow range around 6.5% for the past six weeks, providing borrowers with more certainty even as affordability challenges persist.

• While rates are lower than a year ago, elevated borrowing costs continue to weigh on home affordability and are likely to keep the housing market moving at a measured pace.

The average rate on a 30-year fixed-rate mortgage increased slightly to 6.49% this week, according to Freddie Mac, remaining near the level where borrowing costs have hovered for more than a month.

The rate edged up from 6.47% last week but remains below the 6.77% average recorded during the same week a year ago. Freddie Mac also reported the average 15-year fixed-rate mortgage rose to 5.84%, compared with 5.81% a week earlier.

"Mortgage rates have remained essentially unchanged for the past six weeks, continuing to stabilize after earlier volatility," Freddie Mac said in its weekly Primary Mortgage Market Survey.

Good and bad

The steady rate environment offers prospective buyers greater certainty as they plan home purchases. However, borrowing costs remain well above the historic lows seen during the pandemic, limiting purchasing power for many households.

At current rates, monthly mortgage payments remain significantly higher than they would be at rates closer to 5%, making affordability a key challenge especially for first-time buyers already facing elevated home prices and limited inventory.

For the broader housing market, the stability in mortgage rates could help sustain modest buyer demand during the summer selling season. Buyers who delayed purchases while waiting for rates to fall may become more willing to enter the market if borrowing costs continue to hold near current levels.

However, economists caution that a meaningful rebound in home sales is unlikely without either lower mortgage rates or increased housing supply. While rates are down modestly from a year ago, they remain high enough to discourage many existing homeowners from selling because they are locked into much lower mortgage rates.

As a result, the housing market is expected to continue experiencing gradual improvement rather than a sharp acceleration, with stable mortgage rates providing a more predictable environment for both buyers and sellers, while affordability remains the industry's biggest headwind.