The liquidity crunch appears to have eased in line with previous similar periods of credit tightening, which on average have worked themselves out in six months or less. Now in October, if we look back six months to May, that is about when this particular liquidity crunch began.

The Federal Reserve’s surprise cut of 50 basis points and the resultant favorable reaction by Wall Street investors has helped bring stability back to the lending industry.

The secondary mortgage markets are still hungry for commercial real estate deals with reasonable loan-to-value ratios and solid cash flows. Interest rates for real estate investment remain very attractive on a historical basis, with moderately low rates that were unheard of not many years ago.

Will the Federal Reserve cut rates again this year as most analysts are forecasting? Will commercial real estate prices remain stable? Contact us to discuss this further. We would love to hear from you.