WHERE DOES THE FED TAKE INTEREST RATES FROM HERE?
Fed Advances With Telegraphed Rate Hike
- The Fed chose to lift the Federal Funds Rate to 5.25%-5.50% in July, a move they telegraphed following their June meeting
- Changing rates will impact some deals, but investors and lenders should have been more prepared this time
What Should Investors Expect From The Fed This Year
- Despite the Fed’s declared data-driven approach, Wall Street is forecasting flat rates through the end of 2023
- Headline inflation data has retreated significantly, but “core” inflation measures will be closely tracked
Stable Rates Should Bolster CRE Investment
- If this is the end of the rate hiking cycle, lending could stabilize, and uncertainty will diminish
- This has the potential to begin reducing the buyer/seller expectation gap
*Through July 26
Sources: Marcus & Millichap Research Services, BLS
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