Comments this week from Federal Reserve Chair Jerome Powell are among the most forceful indications yet that interest rate cuts may be delayed past initial expectations. While some extreme predictions push the rate cuts all the way out to March 2025, futures data is pointing closer to September (at the moment). These shifting interest rate expectations may curb the activity of a CRE sales market that was just beginning to revive after a sluggish 2023, but strong housing demand and solid apartment fundamentals continue to attract investor attention in the multifamily market.

Reuters: “Blunt Powell signals rate cut plans on ice” - https://www.reuters.com/markets/us/global-markets-view-usa-2024-04-17/

Bloomberg: “Vanguard Warns 10-Year Treasury Yields Risk Jump Back to 5%” - https://www.bloomberg.com/news/articles/2024-04-18/treasuries-vanguard-warns-10-year-yields-risk-spiking-back-to-5

CME Group: "FedWatch Tool" - https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html

RealPage: “U.S. Marks Largest Volume of Quarterly Apartment Supply in History” - https://www.realpage.com/analytics/1st-quarter-supply-highest-ever/

RealPage: “Putting 1st Quarter 2024 Apartment Demand in Perspective” - https://www.realpage.com/analytics/perspective-us-apartment-demand-1st-quarter/

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