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Interest Rates vs Cap Rates: Will Fed Rate Hikes Put More Pressure on Pricing?

It seems almost a “sure thing” that the Fed will pull the trigger on another 25-basis point rate hike this week at its June 13th meeting.

The rate hike would come on the heels of a similar bump in March that raised the Fed’s benchmark interest rate to a range of 1.5 to 1.75 percent. The bigger question for those reading the tea leaves on higher interest rates is what’s ahead for additional increases in the second half of the year, and how the rising rate environment might impact investment strategy, sales transactions, cap rates and pricing.

Read more here.

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