Consumers resilient, despite household budget headwinds. Core retail spending, which excludes vehicle and fuel sales, rose in real terms in June, even after factoring in inflation. This monthly increase indicates that above-average wage growth generated from a still-tight labor market is propping up households’ budgets during a period of record debt balances and higher interest rates. These latter factors, however, are making consumers more…

Inflation continuing to trend down. The headline consumer price index climbed by 3.0 percent year-over-year in June, the smallest increase since March 2021. A 16.7 percent decline in energy costs helped slow the overall inflation rate to a third of its June 2022 peak. However, prices for other categories of consumer goods and services, such as housing and medical care, continue to ascend. Core CPI inflation, which omits more volatile food and energy costs, rose… Read More

What investment opportunities are created by the realignment of savings with the pre-pandemic trend? Will reduced savings influence Federal Reserve rate policies? How will a burn-off of household savings affect different types of CRE?

Will the U.S. face a recession or can the Fed achieve a soft landing? The risks posed by the resumption of student loan payments Why economic growth is tapering and the prospects of an extended slow-growth cycle

Supreme Court blocks Biden-Harris student debt forgiveness plan. Early in the health crisis, the CARES Act froze repayment and interest accumulation on federal student loans. In 2022, the Biden Administration introduced a forgiveness plan for qualifying borrowers, worth between…

Employment growth strong, but down from recent periods. Monthly hiring dropped below the 300,000 mark for the fourth time this year with the creation of 209,000 jobs in June. While the softest period for employment growth since December 2020, June’s total is still well above the past 30-year average of 126,000. Staff additions were led by…

CPACE Financing Alternative Gaining Traction in Higher-Cost Capital Markets Environment CPACE, a state policy-enabled financing alternative, provides developers access to capital for construction and building upgrades. With all-in rates on floating debt now generally ranging from 8 percent to 13 percent or above, CPACE has become a more viable option for borrowers, including in hybrid structures. Such creative financing alternatives can help borrowers navigate current capital market challenges. Key Features Include: Overview of the current… Read More

Historically, how long has it taken for CRE prices to recover? Could it be better to redeploy capital into different assets? How can buyers hedge risk when financing CRE investments?

Consecutive months of broad growth encouraging. Households increased their spending across a broad spectrum of stores in May, supporting a 0.4 percent rise in core retail sales. For the second straight month, eight categories registered sales growth, a testament to consumers’ spending power. The addition of 339,000 new jobs last month, the most since January, played a role in…

Inflation slows to 27-month low. The headline consumer price index rose by 4.0 percent year-over-year in May, less than half the 9.1 percent pace recorded last June. While consumer prices are still rising more rapidly than the Federal Reserve prefers, the cool down from peak levels encouraged officials to hold the federal funds rate flat in June. The hiatus allows more…