This is a narration of Radix's Rent and Operating Trends report. After a brief pause in April, which led to some economists predicting a further slowdown in future prices, inflation once again reared its ugly head in May, as prices increased 8.6% annually. This marks the highest inflation rate since 1981. As a result, treasury rates have spiked once again with the ten-year treasury now yielding 3.35%. Equities have sold off across the board, and speculation is emerging that the Fed will increase interest rates 75 basis points at its June meeting. Borrowing costs for real estate investors are rising, especially on floating rate loans. Rates on bridge and construction loans tied to SOFR will likely increase for the remainder of the year. This may make deals harder to pencil in for some investors, especially newly formed investment groups or syndicators who have only raised money during the recent low-interest rate environment. Tune in to find out more information on multifamily dynamics during the week of June 12.
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