Fed Increasingly Aggressive in Effort to Curb Inflation; Rising Interest Rates Form Headwind for CRE Borrowers
The Fed’s 75-basis-point hike in the federal funds rate underscores the central bank’s ardent goal to stabilize rapidly climbing prices, even at the risk of pushing up unemployment. Lenders are re-evaluating their offerings as a result, with implications for commercial real estate investors. While higher lending rate may restrain some buyers, a broad-based pricing correction remains improbable.