It seems that some of the discussion and concern lately as I talk to lenders is interest rate risk. This is intriguing and relevant to me and the entire CRE market, as no one seems to know or will predict what is to come.
So I’ll offer my thoughts and I would love to hear yours…
Since there is gridlock in Washington with the Presidential campaign in full effect I believe rates will stay status quo through winter 2012-13. Historically speaking, rates don’t increase during presidential campaigns.
Because of the stagnant growth in our economy and the uncertainly of residential and commercial real estate, rates won’t be effected like the cost increases in food, clothing and energy.
With unemployment still so high, it’s unlikely to have huge swings in interest rates, as that would cripple the economy.
Many buyers I talk to believe there is lots of time to acquire commercial real estate.
