It’s becoming more and more apparent that a rate move by the Fed won’t happen in Q1 and even some are wondering if June is a good idea. Treasuries hit a three month low with the 10-year dropping below 2.00% to hit 1.995% last week. The foibles in stock markets around the globe are keeping investor cash on the sidelines as well as bonds, including mortgage bonds which are helping to keep interest rates for real estate investors low. The 15 year rate for residential investor properties settled in at 3.50% last week, according to Freddie Mac’s weekly mortgage rate survey.

Yet aside from the bleeding on Wall Street are two other bits of data. When looking at the number of jobs created, 292,000, at first glance that seems to be a healthy number but historically during a recovery anything north of 300,000 is the count that can kick start an economy and the 292,000 number has been an anomaly over the past few years, with job counts showing much lower job creation. Despite the job count, wages are still low. According to the Labor Department, real wages in terms of hourly earnings actually fell by one cent. Wage gains are a key factor for the Fed when reviewing monetary policy. Additionally, analysts are looking at falling consumer prices instead of a rise in inflation. The Fed wants to see inflation check in at a 2.00% annualized rate, not deflating prices.

If this trend continues, investors will be looking at other avenues such as real estate for growth but any funds sitting in equities right now are subject to a pullback. Financing costs for real estate investors are still very attractive right now and it looks to continue well into the second quarter of this year.