Over the last two days, the Federal Reserve Bank has met to review the pace of inflation since their previous meeting in June. We have a mixture of positive and negative news, but much of it comes down to perception.

Inflation has slowed, though the 2% target is still far away. Along with consumer spending being higher than predicted, the Fed announced a .25% interest hike yesterday. We’re now at the highest level of benchmark borrowing costs, 5.25%-5.5%, in over 22 years. That may sound scary, but some might remember that the 80s were the highest at 19%. So at least we’re not in that situation.

On a very positive note, economists have withdrawn their recession expectations for the year! Now that doesn’t mean that we’re completely out of the clear, but you can celebrate that we have kicked that can a little further down the road.

Chair Jerome Powel promises to make data-driven decisions at every meeting. By the September meeting, the Fed should have a few more reports to look to. Until then, we and the rest of the country will pay close attention to what interest rates will do.

If you have any questions about strategizing whether to buy or sell, now or later, please feel free to reach out to our team of Real Estate Advisors. We can help you make the wisest decision for you!

Questions? Reach out to one of our advisors for a chat! 

Article to check out:

https://www.cnbc.com/2023/07/26/fed-meeting-july-2023-.html

https://www.bankrate.com/banking/federal-reserve/history-of-federal-funds-rate/