Inflation remains the primary concern and subject of discussion among top economists and the Federal Reserve. Since we are partnered with Rocket Mortgage and we originate loans as well, we track daily changes in interest rates and what drives the economy as a whole. While interest rates remain elevated, they are still somewhat within average historical norms.
US economy continues to show signs of relentless strength since Americans filing for unemployment fell by 13,000 to
216,000 well below the market expectations of 234,000. This marks the lowest level since February. Continuing
and well below expectations of 1.71M
The next Federal reserve meeting is scheduled for Sept 20 revealing Federal reserve decision in regards to interest rates. There is a consensus that rates will remain elevated while the monetary policy does its work. To state it simply, money supply is being shrunk from US economy to ease inflationary pressures. CPI inflation will be released next week and should solidify what the central bank will decide for the September meeting.
The real estate market in 2022 experienced a decline in momentum as consumers adjusted to the new interest rate landscape. Nevertheless, from February onward, there was a significant resurgence in activity as buyers reemerged, actively seeking potential deals in the market.
In my view, it seems that the federal reserve is reaching the top of the hill as far as how much they can push interest higher as to be careful not to be tip the US economy into a severe recession. They should be taking the foot off the gas pedal a bit and ease on tightening on monetary policy further. That said, it’s likely that they will maintain the current interest rates for an extended period to allow their monetary policy adjustments to have a broader impact on the overall U.S. economy.
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