Rod Khleif Real Estate Investor, Mentor, Coach, Host, Lifetime Cash Flow Through Real Estate Podcast.
In July 2022, the Federal Reserve raised interest rates by 75 basis points. It was the highest rate hike since the early 2000s, increasing rates to a level not seen since 2018. Further, the Fed also provided guidance that it will continue increasing rates until it reaches its target of around 4%.
These rate hikes and guidance are aimed at taming historically high inflation. While they’re good for long-term economic health, the short-term picture is less certain. This is especially true with the multifamily investing landscape.
At its core, inflation is the result of too much money chasing too few goods and services, causing prices to rise. In a normal year, the Fed tries to manage inflation to a target of 2% to 3%, but recent prints have it at