Higher Inflation Delays Rate Cuts, Impacts Real Estate in 2024

[Lars Leweck]

Key takeaway: Don't expect lower interest rates soon, but real estate activity could pick up later in the year.

• Inflation came in higher than expected, delaying rate cuts likely until mid-2024.
• What does this mean?

• Investors: Leverage on DSCR loans will continue to suffer with higher rates - prices have not come in enough to generate competitive LTV%, but be ready for buying opportunities.
• Landlords: Keep rents competitive and focus on tenant retention.
• Everyone: Buckle up for a bumpy ride in the first half, but stay optimistic for the future.