Implications of the July FED Rate Increase for CRE
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
