Chicago Agent Magazine
The Federal Reserve has indicated three planned rate cuts for 2024, but Dr. Lawrence Yun is expecting four or five. The National Association of REALTORS® chief economist shared that thought at a recent Market Outlook event — eliciting audible “Oohs” and applause from around the room. Yun kicked off the evening, which was hosted by the Chicago Association of REALTORS® (CAR) at the Marriott Marquis Chicago on Jan. 18. Hundreds of local agents attended. In his speech, Yun detailed apartment construction growth across the country — the highest rate in 40 years, according to his data — stating that there is now an oversupply. So, with vacancy rates rising, rents are beginning to fall. “Rent is a major contributor to consumer-price inflation. As that goes down, it will encourage the Fed to cut rates,” Yun said. Still, Yun emphasized low interest rates in the 3% range are a thing of the past. “If you’re younger than me, there’s hope, but for the remainder of my lifetime I don’t see 3% (happening again),” he said. “6.5% could be the new normal … Definitely not great, but better than 8%.”
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