Inflation remains the primary subject of discussion among policy makers and the federal reserve. There is a fine line to carefully analyze on how much to tighten the economy in order to rein in inflation or slow the economy too much. The latest inflation numbers suggest that it remains somewhat stubbornly high yet slowly moderating but not to the satisfaction of Federal reserve. Thus interest rates will remain high for the foreseeable future until they get the job done. I suspect that rates will remain the same for the remainder of 2023 and 2024.
It has been clearly indicated that controlling inflation is the primary objective at moment and to bring price stability. High interest rates is the primary tool of disposition to the federal reserve in order to bring inflation down. Real estate tend to be somewhat directly related to interest rates. Low rates means higher affordability and vice versa. Supply and demand tend to mirror directly rates as well. The numbers below will reflect the mechanism. On a positive note the economy remains relatively strong all things considered thus the prospect of a soft landing is still the best hopeful scenario.
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