Capital Pacific Blog | News from Capital Pacific and the Market

6.29.2006

Perspective: Interest Rate Hike

Today the Federal Reserve raised the federal funds rate to 5.25%. The quarter point increase by the Federal Reserve was expected. Benjamin Ng, Escrow Director for the San Francisco office of Capital Pacific had the following observation about how this will affect the real estate market. “Players in the marketplace should be aware that these hikes are occurring at a measured pace. That said, the “winners” in this period of rising rates will be the sellers and buyers who act quickly and have the ability to adjust their expectations to accommodate the changing market.” In the long term, Ng speculates that the gradual and predictable rate hikes will not have an adverse impact on investors, as uncertainty in the market is what typically scares investors off.

posted by Capital Pacific # 5:16 PM

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