Current Landscape
As we approach the upcoming Federal Open Market Committee (FOMC) meeting on September 17-18, 2024, market analysts are buzzing with speculation. The big question on everyone’s mind: Will the Fed finally ease its aggressive monetary stance?
What Happened
At the last meeting in July 2024, the Fed decided to hold interest rates between 5.25% - 5.50%. This pause was a relief for many following a rigorous rate-hiking campaign throughout 2022-2023. But it has left the market wondering... What comes next?
What’s Likely to Happen
Given the current economic climate, there’s a growing consensus within the finance community of a rate cut by the end of 2024. The decision will hinge on key economic indicators, such as inflation, employment rates, and productivity data.
Why It Matters in CRE
For commercial real estate (CRE) professionals, the Fed's actions can be a game-changer. Lower interest rates could mean more favorable borrowing conditions for purchasers, which can ignite transaction volume and refinancing activities. On the flip side, if the FED opts to hold rates steady or even hike them, it could further impact market sentiment.
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