Rate Hikes—Paused. Inflation—Lower. Rents—Growing.

With the Consumer Price Index showing declining annual inflation, (from 4.9% in April to 4% in May) and low, 0.1% month-over-month inflation, the Federal Reserve’s decision to keep interest rates level is understandable, but Jerome Powell’s remarks did not indicate that rates will go down any time soon. Even as these paused interest rate increases bring a glimmer of hope that CRE capital markets might improve, stories of looming office property foreclosures, lower property valuations, and interestingly-timed sales activity suggest that a more buyer-friendly CRE sales environment is forming, which will create opportunities for multifamily investors in resilient apartment markets.