The cycle of higher - and rising - FED interest rates has come to an end and the path towards 'normalization' begins. The rate currently is deemed to be 'above normal' in its quest to lower inflation closer to 2%.

Should the FED have lowered rates sooner? Probably. The damage higher rates have done to housing and commercial real estate is evident. The FED is notoriously slow to respond and their data is even more dated and backwards-looking. Anyone seeking precedence need look no further back than 2021 by which time they should have already started raising rates as markets were flooded with cheap capital, stimulus, spending, tax cut dollars, met by extreme under-supply, etc. The FED only raised rates in March of 2022, many months after the rest of the world saw inflation surge in late 2020 through 2021 as demand far outstripped supply. Then they raised them from virtually 0% 11 times within 16 months, the fastest ever!

Regardless, we can all celebrate the beginning of this new cycle as it is certain to help fuel real estate markets, both residential and commercial. All FED policies have beneficiaries while some will lose out, especially those relying on higher saving account interest rates. We should expect some capital to be deployed in the markets in the coming months as investors seek better returns.