Interest Rate Hikes May Have More Impact on Deal Volume Than Cap Rates in 2017

Good article from National Real Estate Investor's site on the likely impact on Cap Rates of the Fed's current policy of slow and steady increases. In short, the immediate impact on Cap Rates is likely to be minimal. The fundamentals of strong rental demand, a growing economy, and still low interest rates (when viewed over the past several decades) will continue to attract investors looking for long term yield. From the article: Interest rate increases in 2017 are expected to have less of an effect on cap rates than originally predicted, with experts forecasting that the current flat cap rate environment will continue. In this environment, sources say investors should instead watch out for t

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