Fed Lowers Rates for the Second Time in Two Months

Fed Lowers Rates for the Second Time in Two Months

For the second time in two months, the Federal reserve has cut interest rates, lowering its benchmark another quarter point, to a range of 1.75% – 2%.

Commercial Real estate investors may continue to benefit from the low cost of borrowing capital, but economists are uncertain if this small change will affect cap rates in the short term.  With little difference in Treasury Yield rates, investors are able to lock in longer term loans at low prices.

The central bank also signaled the strong possibility of another rate cut later this year, citing ‘uncertainties’ about its outlook, and potentially targeting a range of 1.50%-1.75%.

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