Whether you’re in the market for your first home, getting ready to move into your dream home, or just casually browsing the current housing market, being prepared for such a large transition is the best way to combat any fears you may encounter during your closing process. To help prepare, we have a few tips to consider before purchasing a property.
Last month, Federal Reserve Chair Jerome Powell put any mention of a 75 basis point hike to bed, implying that they would not move too quickly. However, after the June 10th inflation report came in higher than expected (8.6%), the idea of a 50-point hike seemed like nowhere near enough. In a sign that the Fed is serious about fighting inflation, and willing to pivot quickly as the economic data changes, the Federal Reserve hiked the Federal Funds rate 75-basis points (0.75%). In addition, they also updated their estimates projecting a year-end Federal Funds rate of 3.4%, substantially higher than initial projections of 1.9% made in March.
We are thrilled to be featuring Jon Flaherty this week in our Employee Spotlight! Jon has been a part of the team for over 5 years. We are so thankful for everything you do, Jon! Learn more about Jon here.
The consumer price index (CPI) for the month of May came in higher than expected. The headline number was up 8.6% over the last year showing the largest increase in decades as price increases were broad based with gas, food and shelter contributing the most. Investors were looking for signs of inflation peaking but will have to remain patient as economic conditions continue to tighten. The Federal Reserve has signaled several interest rate increases over the coming months while also starting to reduce the size of their balance sheet. This process will take time to filter through the economy although the market has anticipated this and reflected across several financial asset classes. The Federal Reserve meets this week and investors are looking to see if they act more aggressively than previously signaled to combat rising prices.