Oil prices and bond yields are moving higher again this morning as optimism surrounding a potential Iran-U.S. peace deal continues to fade. Markets are reacting to uncertainty, and uncertainty is rarely friendly to interest rates.

The Fed hawks are also back in the conversation, with growing speculation that another rate hike could still be on the table as inflation remains stubbornly above 3%. New Fed President Kevin Warsh added fuel to that discussion as markets continue trying to price in the next move.

On the other side of the economy, housing data came in stronger than expected. Housing permits rose 5.8% in April while housing starts slipped only slightly. Both reports beat expectations and continue to reinforce the point that, regardless of rates, life keeps moving forward.

People still relocate, families grow, jobs change, and homes continue to be bought and sold.

Another interesting piece of the inflation story: rent growth remains relatively tame, rising only 1.3% year over year. That’s a meaningful slowdown compared to the sharp rental increases we saw over the last few years.

So where do we go from here?

We do what markets, homeowners, and buyers always do; we adjust, adapt, and plow forward to live another day.

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