Decision kicks off greater reduction cycle. The Federal Open Market Committee (FOMC) slashed the the federal funds rate by 50 basis points during its September meeting, setting the lower bound at 4.75 percent. The first cut since March 2020, this decision reflects the Fed’s confidence that inflation is moving sustainably toward 2 percent and its intent to prevent further labor market softness. In August, headline CPI was up 2.5 percent annually, with unemployment sitting at 4.2… Read More

How the lending climate has become more favorable for CRE investors Current lending rates by property type The narrow window of opportunity that investors can capitalize on today  

Joblessness pulled back for the first time since March. National unemployment fell by 10 basis points month-over-month to 4.2 percent in August, alleviating some recession concerns following a notable jump in July. Driving the August decline was a moderation in the number of people on temporary layoff. The 190,000-person decline reversed an uptick from the prior month and implies more people in this situation were able to find alternative positions. Still, unemployment remained 40 basis points… Read More

Federal Reserve increasingly focused to slowing employment market Rising unemployment aligns with Fed plan to reduce overheated wages Why CRE space demand should remain sturdy despite slowing growth outlook  

Modest borrowing cost relief inches up home sales. The average 30-year fixed-rate mortgage decreased from a 2024 peak of 7.1 percent in May to the mid-6 percent range by late August. That downshift brought some buyers off the sidelines in July, with existing home sales rising by 1.4 percent month-over-month. Still, the uptick in purchases was mild as sales velocity remained…

Sector registers rare achievement. For the third consecutive month, consumers set a record for core retail sales, exceeding pundits’ expectations. Consumer resiliency translated to a 3.4 percent year-over-year rise in spending during July, with sales up in real terms even after factoring in core CPI inflation. Gains were widespread across retail segments, with nine of 10 core categories notching annual spending increases, ranging from…

Key CRE Performance benchmarks of the last five years Why the CRE Outlook is increasingly positive Why the CRE investment climate will strengthen

Treasuries decrease amid softening market conditions. In the 90 days ended Aug. 9, the 10-year Treasury fell 50 basis points to the 3.9 percent range, its lowest level since a brief point in February of this year. This decline manifested as the prospects for upcoming interest rate cuts by the Federal Reserve gained momentum amid lower inflation readings and loosening…

The Fed held rates flat in July… Now what? Economic momentum is slackening – Now what? What rising unemployment really means for investors

Unemployment rate hits a near three-year high. Total employment increased by 114,000 jobs in July, the second-lowest monthly gain in 2024 and falling well under the trailing-year average of 215,000 roles added. That hiring slowdown contributed to unemployment rising by 20 basis points month-over-month to 4.3 percent, the highest measure since October 2021. Health care accounted for about half…