What the September FED Meeting Means for CRE Investors
Federal Reserve Holds Rates Steady
- The Federal Reserve announced the Federal Funds Rate will remain between 5.25% and 5.50% in September
- The Fed also signaled its intentions to maintain elevated rates for longer than previously expected
Flat Rates Could Increase Lender Activity
- If the Fed Funds Rate has reached its terminal level this cycle, lending and debt liquidity may improve
- A wave of Distress in the CRE market may continue to be confined to urban office and hotel assets
Flat Rates Could Help Narrow The Expectation Gap
- Stable lending rates will allow potential buyers to loosen underwriting standards and lock in strategies
- Interest rates are expected to hold steady until EOY, which could give the market more time to align
*As of September 21
Sources: Marcus & Millichap Research Services, CME Group
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