This month, inside the Federal Reserve’s latest decision to increase interest rates, its tenth consecutive rate hike, real estate professionals saw a glimmer of hope - hope that the Fed is wrapping up its aggressive campaign to curb inflation with higher interest rates.
Granted, this new hope comes from what the Fed didn’t say; not what it did say. In this month’s post-meeting statement, the Fed did not imply more rate increases were imminent. (In contrast, previous rate increases were accompanied by hints that more increases were forthcoming.)
This omission left plenty of room for debate. Some economists interpreted the omission as a policy shift; others said the statement simply opened the door for a policy shift.
Then, two weeks later, on May 19, Federal Reserve Chairman Jerome Powell added more reason to be hopeful, saying the Fed may not have to raise interest rates as high as anticipated to control inflation. At the same time, Powell reiterated that inflation remains too high.
So, will the Fed’s target rate — which has now reached its highest point since August of 2007 — finally level off? We still don’t know, and we might not know until June 14, when the Federal Reserve Committee meets again.
As real estate professionals, we have a complicated relationship with interest rates. Nobody wants runaway inflation, but we feel significant impacts when in a high interest rate environment. Our industry is the fulcrum through which the Fed leverages its influence on the broader economy, and rising rates have caused a slowdown in transaction activity, even in hot markets like South Florida.
While rising interest rates negatively affect home buyers’ purchasing power, at Butler Title, we help ease this burden by providing our clients with the Butler Rebate. Buyers are hyper aware of closing costs in this environment, and every dollar saved is a dollar earned. So, why pay more for closing costs when you don't have to? Close your next purchase with Butler Title and save money on closing costs. We’ve given away almost $1 MILLION dollars in rebates, and you can be next.
To learn about Butler Title and how we save our clients money with the Butler Rebate, give us a call or visit www.butlertitle.com.
Butler Title is a full-service, attorney owned and operated title insurance agency. We keep it simple and focus on what we do best: real estate closings. From first-time buyers to local moguls, BT provides an industry-leading fee structure and unparalleled experience.
P: 954.616.8735 F: 954.206.1097