The consumer price index (CPI) this month rose to 9.1% YOY. Yet this increase is mostly driven by energy and food costs. The core CPI, which omits energy and food costs, is actually down for the third straight month. Although the Federal Reserve increased rates again on July 27th, many economists believe inflation is nearing its peak.
What does this mean for properties with 5+ doors? We continue to see apartments go under contract, but struggle to close. As debt markets change, buyers are having a hard time sticking to their purchase price offered 60 days prior. Before submitting offers, ensure you can close the deal by underwriting with interest rate hikes in mind.
