In the final meeting of the year, the Federal Open Market Committee has decided to cut the federal funds rate by 25 basis points, to a target range of 4.25 percent to 4.5 percent. This is the third rate cut this year, following cuts made in September and November. In the Dec. 18, meeting materials, the Fed reiterated its goals for the U.S. economy: maximum employment and stable prices. With economic activity increasing and inflation easing, the Fed is focusing on stability as it lowers the federal funds rate as the U.S. economy nears the Fed’s 2 percent inflation goal.
The rate cut is expected to be a beneficial move for commercial real estate borrowers, the private equity sector and sale-leaseback volumes, but it doesn’t necessarily indicate a long-term positive environment for the housing market.
Though mortgage rates are unlikely to drop, commercial real estate borrowers are likely to find rel
