The latest Producer Price Index (PPI), a measure of wholesale costs, came in higher than expected. Meanwhile, the Federal Reserve held rates steady this week, which was expected. Despite this short-term inflation pressure, there was no indication of rate hikes from any of the 19 Fed members—signaling the Fed is not concerned enough to even consider raising rates at this time.
In fact, the topic of rate hikes was barely addressed during Chair Powell’s press conference. He maintained an overall optimistic tone, reiterating that the Fed still expects inflation to trend back toward its 2% target later this year.
What this means for you - activity remains strong. Many buyers are locking in rates in the high 5s to low 6s, and we’re seeing multiple-offer competition on move-in ready homes under $2M. Above $2M, buyers are also motivated (many still first-time buyers), but more selective.
Overall, Buyers believe this inflation is temporary and they’re done waiting on the sidelines. We are here to help you get game-ready with a strong pre-approval!
