At CAR Event, Lawrence Yun Predicts Four Or Five Interest-Rate Cuts –Chicago Agent Magazine

Chicago Agent Magazine

The Federal Reserve has indicated three planned rate cuts for 2024, but Dr. Lawrence Yun is expecting four or five. The National Association of REALTORS® chief economist shared that thought at a recent Market Outlook event — eliciting audible "Oohs" and applause from around the room. Yun kicked off the evening, which was hosted by the Chicago Association of REALTORS® (CAR) at the Marriott Marquis Chicago on Jan. 18. Hundreds of local agents attended. In his speech, Yun detailed apartment construction growth across the country — the highest rate in 40 years, according to his data — stating that there is now an oversupply. So, with vacancy rates rising, rents are beginning to fall. "Rent is a major contributor to consumer-price inflation. As that goes down, it will encourage the Fed to cut rates," Yun said. Still, Yun emphasized low interest rates in the 3% range are a thing of the past. "If you're younger than me, there's hope, but for the remainder of my lifetime I don't see 3% (happening again)," he said. "6.5% could be the new normal … Definitely not great, but better than 8%."

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