Our fearless Federal Reserve Chairman Yellen has spoken! In a statement recently released, “some” further labor market progress was needed prior to a rate increase. Earlier this year, the chances of a rate increase going beyond June was close to nil. Now there may be an increase in September is the consensus among the experts. I still am of the opinion that any rate increase will not come until December at the earliest, but most likely rate increases will not start until after the first quarter of 2016.
For years now, we have been talking about labor markets, lack of wage pressure and lack of inflation as major concerns. Not much has changed. Real inflation is still dormant and I see that as a major concern. Add to it global issues like China’s market among many others and there are sure to be more issues that will continue to spook the Fed from raising rates.
In the interim, money for loans is abundant. Lenders are actively and aggressively bidding for good loans to good borrowers. As an example, we recently closed two construction loans totaling $27,600,000 for the development of two large homes for re-sale. Or, a $6,225,000 acquisition of a newly remodeled mixed use project that consisted of live work lofts and retail.
Whatever your financing needs, we are available to review, assess and provide options!