Amarillo National Bank gives local economic forecast for 2025

AMARILLO, Texas (KEYU) -Amarillo National Bank’s economic outlook for 2025 calls for interest and inflation rates to level off or stabilize.

According to Matt Ramsey, senior director of investments at Amarillo National Bank, inflation rates for 2025 will stabilize at 2.4% after reaching an increase of 9% to 11% in 2022.

“It affected companies through input costs. “When input costs reach that level, corporations and small businesses have no choice but to raise prices themselves to account for that,” Ramsey said.

This will allow residents and businesses to adjust to rising costs.

“As they pay down and restructure debt, we expect an increase in confidence to add to additional consumer spending,” Ramsey said.

ANB Senior Vice President Tracy Patrick says residential interest rates for 2025 will remain between 6.5% and 7%. This, along with the rising cost of insurance, has made housing affordability more difficult.

“When interest rates were in the 2% to 3% range, we worked like 14-hour days. Now these people are still in their homes and they don’t want to give up that interest rate,” Patrick said. “So, like I said, they’re going to take equity out of their homes to make improvements or consolidate all of their higher debt.”

While there are fewer homeowners selling, this should make for a less competitive market for buyers than in previous years.

Patrick says the local real estate market may experience a subtle slowdown, but buyers will move to the area because of the employment opportunities and diversity in the Amarillo area.

LATEST NEWS:

Posts

Leave a Reply

Your email address will not be published. Required fields are marked *