The Cost of Capital
The Federal Reserve has fired the first salvo in the war on inflation by increasing interest rates by a whopping 50 basis points. But what does this mean for the market?
The Multifamily Minute takes a look at the latest news and trends across the multifamily industry, featuring content from Janover.Ventures’ affiliated sites.
Are you looking for financing? Click below to get a free quote today.
Interest rates up by 50 BPS
As many expected, the Fed announced a 50 basis point increase to interest rates after its meeting this past Wednesday. While some analysts feared the increase would be more to the tune of 75 BPS, the 0.50% raise is still the largest rate hike since May of 2000. While Federal Reserve Chairman Jerome Powell made clear that times were “uncertain”, he did not rule out the possibility of further 50 BPS increases in the near future. More coverage on the rate increase and what it means for the multifamily sector can be found in this update from Multifamily.Today.
While investors prepare for an increased cost of capital in an uncertain economy, one asset type may be worth the extra consideration. Affordable housing availability has remained a big issue for the country, but recent shifts in the economy could change investor perspective. Affordable housing can be a strong investment, particularly in times such as these, and the latest piece from the Multifamily.Loans blog sheds some light on a few reasons why.
Corporate Affordability Accountability
It isn’t uncommon for corporate giants like Amazon to pledge funding towards affordable housing initiatives. While these monetary commitments can reach some impressive sums, what are the real impacts of these contributions? We break down a couple of recent corporate affordable housing commitments to get a better look at the results of these investments in our latest HUD.Loans blog post.
Only the most creditworthy borrowers get the prime rate from their lender of choice. For the vast majority of investors, however, the prime rate is nothing more than a baseline that the actual interest rate on any given loan stems from. Regardless of what a prime rate means to you, a quick refresher on what the prime rate is and how it is determined is exactly what this post from Apartment.Loans accomplishes.