Multifamily Minute Reader Reflections: Interest Rate Outlooks
Last week's 40,000 Multifamily Minute subscribers weighed in on what the Fed's next increase would be. (Spoiler alert: They were right.)
Another Fed meeting, another interest rate increase.
It definitely wasn't a surprise for our readers, at least.
There's no table for this week's survey results.
Simply put, the amount of respondents that got it right (e.g., projecting a 25-basis-point federal funds rate increase) was overwhelming, at about 92%.
Sure, we had a few suggesting the Fed may hit the brakes and not implement any increase, but the results were very clear.
What's Next for the Fed?
It's anyone's guess what the next FOMC meeting will bring. There's more than a month between now and then, and everything from consumer price index (CPI) reports to BLS employment reports to, yes, additional banking woes could have an impact.
If inflation begins to cool even more, the Fed could hold off — but maybe not for long. Some economists and analysts anticipate rates could peak around 6%, though smaller, more infrequent 25-basis-point increases seem likely rather than the large hikes we saw last year.
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I like to hear how you're making sense of the multifamily landscape these days. There's so much going on, and every one of us has different — but highly valuable — insights to offer each other. That's true if you've been investing in multifamily for decades, and it's true if you're still on the sidelines.
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Our Previous Survey
The previous week, I asked about the impact of bank failures on the multifamily industry. Basically: Would the failure of SVB and Signature Bank impact how you get a loan for your apartment building? Would it have other, less direct impacts? Check out the results here.