Omaha Market Sees Negative Absorption For The First Time Since 2020
Several significant economic factors are currently at work across the U.S., rising interest rates, surging inflation, and labor supply issues. According to the U.S. Labor Department, U.S. inflation rate hit a new 40 year high in May seeing 8.6 percent increase. The Federal Reserve implemented a series of interest rate increases with the hopes of curbing inflation to avoid a recession, resulting in the highest interest rates since 1994. Freddie Mac reported 30-year fixed-rate mortgages were 5.25 percent on May 19, an increase of 2.25 percentage points from one-year prior, and a 2.15 percentage point increase in 2022. Despite all the macroeconomic concerns, the Omaha market has only seen a minimal pullback to date in our economy.