Are Rate Cuts Finally Coming This Year?
September, September, September, hint the experts! If inflation stays low through the rest of the summer, economists say we could see a cooldown this fall with rate cuts in September.
According to data posted by FloridaRealtors, the US Labor Department just busted out a “better-than-expected” report showing consumer pricing dropped by 0.1% from May to June of 2023. That doesn’t sound like much, but it’s the first monthly decline in overall inflation since May 2020. For comparison’s sake, prices were up 3% in June 2023, which beat 3.3% in May 2023.
Is the Fed Just Flirting With Rate Cuts?
This last round of inflation data is deemed good and badly needed as reassurance to consider dropping rates in September–not to mention it’s also good news for your billfold.
While no one can fully predict what’s going to happen, it seems likely we have a rate cut coming based on data trends! It’s been talked about for months, so the pressure is on.
By the way, it’s an excellent time to buy that used car for your college teen headed to school in the fall; used car prices dropped 10.1%. Even gas is down 2.5% from a year ago. Thank goodness in Tampa, we have options to bike and walk places with our gorgeous weather, regardless of the price of fuel. However, supermarket prices are up 1.1% from a year ago.
Why Inflation Matters For Rates to be Cut
The Fed’s policymakers need to see inflation back to its central bank’s target of 2% to feel confident in cutting the key rate from its 23-year high. For perspective, inflation is now far below its peak of 9.1% in mid-2022.
The Tampa Real Estate Market and Rate Cuts: Let’s Go!
And now for the best piece of all: property values, selling, and buying. When the rates drop, mortgages become more affordable for a wider range of buyers, which is great for a competitive market and getting inventory to move. Houses have sat a little longer in the Tampa real estate market lately, which is nothing to worry about in a high-resale area like ours. However, it’s always nice to get multiple offers rolling in right away!
Data shows rental and home ownership costs saw the mildest increase in almost three years, up from 0.3% from May to June of this year, with rents up 5.1% compared to June 2023. Auto insurance, apartment rent, and services rose rapidly from January through March of this year but have leveled out a bit at this point. (Anyone who’s already got an investment property likely made bank if they had renewals at the beginning of this year.)
Where Do We Go From Here with Buying and Selling Real Estate? Call Me!
I’ve always got current market trends (and pending rate cuts) on my radar and can guide you in your decision-making. We’ll look at the home or investment property you’re selling to get the best price and pick out your new one! Just give me a call, and we’ll create an effective buying or selling strategy in this crazy post-pandemic market.