In this Real Estate News Brief for the week ending January 21st, 2023... why mortgage rates are looking more attractive, the new office space investing opportunity, and a new home design trend called “Barkitecture” that makes pets a priority.    Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review.   Economic News   We begin with economic news from this past week and more evidence that prices are coming back down to earth. The government reports that wholesale prices were .5% lower in December. It was the biggest drop in the Producer Price Index since April of 2020 when the economy shut down because of Covid. The monthly decline brings the annual rate of wholesale price inflation down from 7.2% to 6.2%. (1)   The Federal Reserve will be analyzing the latest reports on inflation ahead of a rate hike decision on February 1st. The Federal Funds rate is currently within the range of 4.25 and 4.50%. Now that inflation is receding, several Fed officials have spoken out, saying they are still determined to “stay the course” but are considering a smaller quarter-point rate hike. They will also have access to the latest report on the Personal Consumption Expenditure index, or PCE, right before that meeting, which could help sway their opinion. The PCE is their preferred inflation gauge because it goes beyond household expenses and accounts for changes in consumer behavior as prices rise. (2)   Although several big tech companies are announcing layoffs, jobless claims remain low. The Labor Department reports just 190,000 initial applications for unemployment last week. That’s down from 205,000 the week before. (3) It indicates that the job market is still strong, but then newly announced layoffs won’t be reflected in the unemployment numbers just yet. Among the companies announcing a substantial number of layoffs  are Google parent Alphabet, Amazon, Carvana, Coinbase, Lyft, Facebook parent Meta, Microsoft, Robinhood, Salesforce, Snapchat parent Snap, payment processor Stripe, Twitter and Wayfair. (4)   In the latest housing market news, housing starts were a mixed bag for residential construction. The Commerce Department reports that, overall, housing starts fell a seasonally adjusted 1.4% to 1.38 million. That includes an 18.9% decline in multi-family starts and an 11.3% increase in single-family starts. The Northeast has the biggest surge in single-family starts at 96.9%! When it comes to permits, they were down 6.5% for single-family homes and up 7.1% for multi-families. (5)   Builders are feeling more confident about the housing market. The National Association of Home Builders says the monthly builder confidence index was up four points in January to 35. That’s far lower than it was a year ago, at 83, but the NAHB says that builders are seeing a “light at the end of the tunnel” as mortgage rates recede and demand increases. NAHB chairman, Jerry Konter says: “The rise in builder sentiment means that cycle lows for permits and starts are likely near, and a rebound for home building could be underway later in 2023.” (6)   Existing home sales continue on a downward trend. The National Association of Realtors reports a 1.5% drop to a seasonally adjusted annual rate of 4.02 million homes in December. It’s the 11th month of declining sales and the lowest level of sales activity since November of 2010. Year-over-year, existing home sales are down 34%. High home prices and mortgage rates have scared a lot of buyers away, but there’s also a huge lack of inventory, in part, because potential buyers are postponing their plans to sell. (7)    Mortgage Rates   Mortgage rates are declining and getting closer to the 6% level. In the last week, Freddie Mac says the average 30-year fixed-rate mortgage was down 18 basis points to 6.15%. The 15-year was down 24 points to 5.28%. Freddie says: “Declining rates are providing a much-needed boost to the housing market, but the supp