The Fed Isn’t Cutting Yet – Here’s Why That Matters

June’s inflation report may have just shut the door on a much-anticipated July rate cut from the Federal Reserve. While the Consumer Price Index showed modest progress – up only 0.1% month over month and 3.0% year over year – it wasn’t quite enough to force the Fed’s hand.

The central bank is still looking for broader signs of cooling across all economic sectors before it feels confident enough to begin trimming rates.

Investor Insight: What This Means for You

If you’re in the business of buying or refinancing investment properties, here’s how this data affects your game plan:

Interest Rates Will Likely Hold for Now

With no Fed cut likely in July, mortgage rates for both primary residences and investment properties will remain elevated. That means borrowing costs stay where they are – for now.

Inflation Is Cooling, But Slowly

Slower inflation is good news, but the Fed wants more consistency before making a move. Expect the current rate environment to stretch through summer, with potential improvement by fall.

Rent Demand Stays Strong

Higher interest rates continue to push would-be homebuyers into rentals, boosting investor opportunities in the rental space – especially if you already own or are shopping for cash-flowing properties.

Actionable Investor Takeaways

Lock In If the Deal Works

Waiting for lower rates can backfire if home prices or competition rise. If your DSCR loan or investment deal cash flows now, it may be worth locking in current terms.

Watch for Fed Signals in August and September

Investors should monitor upcoming Fed meetings for clearer rate-cut timing. A rate drop could open a new refi window or create fresh opportunities to buy undervalued assets.

Reevaluate Your Financing Options

If conventional loans are too expensive or restrictive, consider alternative financing options like:

• DSCR loans
• Bank statement loans
• Interest-only Non-QM loans
• Bridge financing

Find investment loan lenders now

Final Thoughts: Patience Pays, But Readiness Wins

While we may not get a rate cut in July, the broader trend is moving in investors’ favor. Inflation is easing. The Fed is watching. And opportunities are still out there for those who are prepared.

Whether you’re financing a rental, buying commercial property, or just looking to stay ahead of market shifts, now’s the time to stay informed – and stay ready.

Read the news article on Scotsman Guide
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