What the September FED Meeting Means for CRE
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
