What’s Ahead for Cap Rates and Interest Rates? via Nareit

One of the most critical issues for real estate investors in the year ahead is the outlook for cap rates and property prices, especially with Federal Reserve policy in the spotlights. In addition to the future path for their target for short-term interest rates, Fed officials have also been discussing policy options concerning their securities holdings. Any decision to slow the run-off of their $2 trillion holdings of long-term Treasury securities and $1.6 trillion holdings of Agency MBS may have a direct impact on long-term Treasury yields and mortgage rates—and commercial real estate

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