Vacancy rates are increasing, and rental days-on-market are rising right along with them. For many landlords, the only lever left is lowering rents and that’s exactly what we’re now starting to see across the market.
Shelter makes up 35.5% of the Consumer Price Index (CPI). In trade terms, that’s a lot. When rents cool, inflation cools. Add in the recent drop in oil prices, and we should see some positive movement in the inflation data this month.
All of this gives the Fed even more reason to consider lowering their rate.
Tomorrow’s ADP Employment Report will be a key one to watch. Unlike survey-based reports, ADP is pulling directly from its actual payroll database no averaging, no guessing which makes it a much more accurate read on what’s really happening in the labor market.
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