Federal Reserve Lowers Interest Rates

The Federal Reserve just lowered the interest rates by 50 bps.

Lower interest rates can have several positive impacts on commercial real estate (CRE):


1. Reduced Financing Costs: Lower interest rates decrease the cost of borrowing, making it cheaper for investors to finance new projects, expansions, or acquisitions.

2. Increased Property Values: As borrowing becomes more affordable, demand for real estate often rises, which can drive up property values.

3. Higher Demand: With lower financing costs, more investors and businesses are likely to enter the market, increasing demand for commercial properties.

4. Improved Cash Flow: Lower interest rates can improve cash flow for property owners by reducing their debt service costs.

The interest rates should continue to decline, however, keep in mind, national and global economic conditions can indeed be unpredictable, so locking in a rate that works for you at the time of your refinancing is often a wise move.

If you are you considering refinancing any of your properties soon, or just keeping an eye on the market, please contact Howell Investment Finance located in Ames, Iowa to see what your options are.

We specialize in financing multifamily and senior housing properties in Iowa with non-recourse HUD, Fannie Mae, Freddie Mac, insurance companies, and CMBS mortgages. 

Denny Howell
Commercial Mortgage Broker | Howell Investment Finance

Ph: 515.233.8228 or C: 515.291.3632