A Closer Look at the Macro Market 

The Manhattan real estate market is showing signs of strength. Despite a slight decline in demand, the supply of available listings has dropped significantly more, pushing prices upward. Experts believe that lower interest rates and pent-up demand are driving this trend.

On the macro front, credit spreads have narrowed, suggesting a decline in risk aversion. The recent yen carry trade unwind and positive economic data have contributed to this improvement. The Federal Reserve is expected to continue raising interest rates to combat inflation, but the market anticipates a slower pace than previously projected.

Regarding the Federal Reserve's monetary policy, the market is currently pricing in a total of 100 basis points in rate cuts for the remainder of the year. This suggests that the Fed is expected to gradually ease its tightening measures. However, the actual path of rate cuts will depend on incoming economic data, such as inflation and employment reports.

Overall, while there are uncertainties in the market, the current indicators suggest a cautiously optimistic outlook for both real estate and the broader economy. The narrowing of credit spreads and the expectation of a slower pace of interest rate hikes are positive signs. However, it is essential to monitor economic developments closely to assess potential risks and opportunities.