What Happens to the Real Estate Market If Inflation Never Hits the Fed's 2% Goal?
What Happens to the Real Estate Market If Inflation Never Hits the Fed's 2% Goal? How Stubborn Inflation Reshapes Treasury Yields, Mortgage Rates, Home Prices, and Affordability — And What It Means for Buyers, Sellers, and Investors Published on AgentsGather.com | Real Estate Market Analysis The Fed's 2% Target and a Real Estate Market Waiting for Relief For the better part of two years, American homebuyers, sellers, investors, and real estate professionals have been waiting on the same thing: relief from elevated mortgage rates. That relief, in turn, depends on one central fact — whether the Federal Reserve achieves its stated inflation target of 2.0%. Since the inflation spike of 2021 and 2022, when the Consumer Price Index (CPI) briefly eclipsed 9% on an annualized basis, the Fed has been engaged in one of the most aggressive monetary tightening cycles in modern history. By 2023, they had raised the federal funds rate to a range of 5.25% to 5.50% — the highest in over two de...