In June 2022, the Fed increased interest rates by 75 basis points – its largest move since 1994, noting that inflation is the highest it’s been since the early 1980s. The target federal funds range 1.5% to 1.75%, and the Fed anticipates more increases.
By gradually raising rates, the Fed is trying to get a handle on inflation and slowly pull some of the excess liquidity out of the economy.
While inflation is at 40-year highs, interest rates are nowhere near 2000’s 6.5%, much less the record high of nearly 20% in 1980.
Taking out a loan to purchase or refinancing commercial property may still be a smart move; however, look at more than interest rates. Consider supply/demand shifts, local market dynamics and financing structure.
Read entire article: What interest rate hikes mean for multifamily property investors (JP Morgan Chase, 6.24.22)
