The Federal Reserve opted to cut interest rates for the third time this year at its October meeting, by a quarter percentage point, to a range of 1.50 to 1.75 percent. But while lower rates should sustain the positive momentum in the commercial real estate industry for now, there are concerns about whether the rate cuts were really needed, according to industry sources.
The Fed signaled that no further cuts would be coming this year unless the U.S. economy experiences a significant slowdown. At the same time, the Fed is “not going to raise rates unless they see signs of heavy inflation, so the chance of another Fed rate increase is very minimal,” according to David Pascale, senior vice president with George Smith Partners, a Los Angeles-based commercial real estate capital markets advisory firm.
Read the full article: Another Interest Rate Cut Will Help Hold Up CRE Values, But Was It Needed? (National Real Estate Investor)
