At Ei8ht Street Funding we know that real estate investors who understand the economy are better equipped to identify opportunities and avoid unnecessary risk. Economic indicators such as job growth, inflation, and interest rates directly impact property values, rental demand, financing costs, and overall investment performance. By staying informed about economic trends, investors can make more strategic decisions regarding acquisitions, refinances, rent increases, and portfolio expansion. In today's market, understanding the economy isn't just helpful—it's a competitive advantage that can mean the difference between a successful investment and a costly mistake.
Here are 3 U.S. economy indicators Every investor should pay attention to.
1. Jobs Report: Nonfarm Payrolls + Unemployment Rate
Why investors should care:
Jobs drive rental demand. If people are employed, they can pay rent, move for work, and support local housing demand. If job growth slows or unemployment rises, investors need to be more careful with rent assumptions and vacancy risk.
Current reading: The U.S. added 172,000 jobs in May 2026, and unemployment held at 4.3%. That shows the labor market is still holding up. (Bureau of Labor Statistics)
Importance to investors:
A strong job market supports rent collections and tenant demand. But investors should still watch local job growth, because a strong national number does not mean every city is strong.
2. Inflation: CPI / PCE
(Consumer Price Index/Personal Consumption Expenditures Price Index)
Why investors should care:
Inflation affects almost every cost in a rental property: insurance, repairs, utilities, taxes, labor, and materials. It also affects interest-rate policy.
Current reading: CPI was up 3.8% year over year in April 2026, while core CPI was up 2.8%. The Fed’s preferred inflation gauge, PCE, was also up 3.8% year over year, with core PCE up 3.3%. (Bureau of Labor Statistics)
Importance to investors:
Inflation above the Fed’s 2% target means rates may stay higher for longer. That matters because higher costs can shrink cash flow even if rents are rising. The Fed’s long-run inflation target is 2% based on PCE inflation. (Federal Reserve)
3. Interest Rates: 10-Year Treasury / Mortgage Rates
Why investors should care:
This is the number that hits investors directly. Higher rates reduce DSCR, lower buying power, and make cash-out refinances harder. Lower rates can improve loan proceeds and make more deals qualify.
Current reading:
The average 30-year fixed mortgage rate was 6.49% as of June 25, 2026. The 10-year Treasury continues to trade in the mid-4% range, recently moving around 4.38%–4.40%. For real estate investors, this means financing costs remain elevated, making deal structure, cash flow, and long-term exit strategy more important than ever.
Importance to investors:
Rates are not just a lender issue; they are a deal-structure issue. Investors should stress-test every rental at rates 0.50% to 1.00% higher than expected to make sure the deal still works.
