Are you thinking about buying a home and want to stay ahead of the curve? I’m going to share some information on why we feel that interest rates are going to drop in the very near future and what you can do to take advantage of this opportunity before everyone else in the market catches up. Hi, my name is Scott Himelstein with the Scott Himelstein Group here in Los Angeles, and in this video, I’m going to share some insider information about the current state of the market and why we predict interest rates will drop in the very near future. I’m going to dive into the specifics of the statistics on why we feel this is going to happen, so stick around so you’ll be better prepared to take advantage of this opportunity as soon as you can.
As many know, inflation is the main factor that impacts interest rates. One of the main ways we determine inflation is from the consumer price index report also known as the CPI report, which is released every month by the US Bureau of Labor Statistics. Each month we get a new CPI number which essentially shows how much the price of consumer goods went up that month. The CPI number for the last 12 months is then added together to give us our inflation number. Interest rates typically follow this inflation number very closely, so if this 12 month inflation number goes up, interest rates will likely also follow and go up and if the inflation number goes down then interest rates are likely to go down as well.
The key thing to focus on with this CPI report is not necessarily just the new number that comes in each month but the number that it replaces from the year before. Since inflation is determined on a rolling 12 month basis, every month when a new number comes out, it replaces the number from that month of the previous year. This means that if the new CPI number is lower than the CPI number that it’s replacing from 12 months prior, inflation goes down. As you can see, the most recent CPI number released in April of 2023 was the same as the CPI number from April of 2022, which means that inflation didn’t change. As we look forward to May and June, however, these are where things get really exciting for the market and for current interest rates. Since the CPI numbers from May and June of 2022 were so high, as long as we replace those numbers in the next few months, May and June of 2023 with lower numbers, inflation will go down which likely means interest rates will follow. That’s essentially why we feel so optimistic about interest rates and the likelihood of them dropping in the next few months.
However, there’s something extremely important to keep in mind. As soon as interest rates do drop, the headlines and the news are going to start picking that up and there is going to be a frenzy back to the market. Prices are going to go up and competition is going to rise. So in order to fully take advantage of this information, it’s important that you have your ducks in a row, and that you’re pre-approved and ready as soon as the market shifts to be able to purchase a home at the right time, which is why having access to this insider information now before competition and prices go up, is extremely important. That’s why I’m making this video. If you want to buy and take advantage of this, you have to make sure that you have all your ducks in a row and you’re pre-approved and ready to take advantage of this opportunity before the rest of the buyers catch on.
So if you’ve been thinking about buying a home, right now is your time. The window of opportunity is closing, and if you wait, you’ll be faced with higher competition and higher prices in the very near future. If you’re ready to take advantage of this opportunity before everyone else catches on, reach out to me and let’s schedule a time to sit down and go over your specific situation so I can help you reach your real estate goals and become a homeowner.
