With the Consumer Price Index showing declining annual inflation, (from 4.9% in April to 4% in May) and low, 0.1% month-over-month inflation, the Federal Reserve's decision to keep interest rates level is understandable, but Jerome Powell's remarks did not indicate that rates will go down any time soon. Even as these paused interest rate increases bring a glimmer of hope that CRE capital markets might improve, stories of looming office property foreclosures, lower property valuations, and interestingly-timed sales activity suggest that a more buyer-friendly CRE sales environment is forming, which will create opportunities for multifamily investors in resilient apartment markets.

Sources covered in this episode:

The Wall Street Journal: “Renters Are About to Get the Upper Hand” - https://www.wsj.com/articles/renters-are-about-to-get-the-upper-hand-f6387df4

The United States Bureau of Labor Statistics: “Consumer Price Index - May 2023” - https://www.bls.gov/news.release/cpi.nr0.htm

Multi-Housing News: “How the Fed’s Pause on Interest Rates Impacts Multifamily” - https://www.multihousingnews.com/will-the-fed-hit-pause-multifamily-experts-weigh-in-on-a-potential-rate-hike/

The Federal Reserve Bank of the United States: “June 14, 2023 FOMC Statement” - https://www.federalreserve.gov/newsevents/pressreleases/monetary20230614a.htm

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