Escalating Trade War Sparks Interest Rate Volatility
Following 4 aggressive rate hikes in 2018, the Fed cut interest rates on July 31 – their first cut since 2008
Escalating trade tensions with China sparked uncertainty, induced flight to safety of bonds
10-Year treasury plummeted to the lowest level since late 2016 and remains highly volatile
Economic Outlook Steady…Trade War Poses Risk
The underlying economy remains sound – job growth, consumption and demographics are all positive
Escalating U.S./China trade war slowing global economies; Several countries dropping rates
Stability of CRE Investment Increasingly Attractive
Uncertainty and financial market volatility reiterate stability of commercial real estate
Lower borrowing rates may be temporary; if trade war ends, rates could rise quickly
Randolph is a Multifamily Investment Sales Broker with eXp Commercial servicing Multifamily Buyers and Sellers in the Greater Chicago Area.