Whaddya Think Rates Are Gonna Do?

COSTA MESA, CA-It’s a commonly asked question in our business.  It’s a natural one considering the cost of capital matters…a lot; especially in commercial real estate. Yogi Berra, baseball great and master at turning a phrase, perfectly articulated my feelings when he said, “I wish I had an answer to that because I’m tired of answering that question.” What an apropos insight, particularly in regards to the direction of interest rates! Think about it: we have access to a virtually limitless supply of opinions about interest rates.

Perspectives come from billionaire investors, the Blue Chip consensus, money center banks, and the Congressional Budget Office just to name a few. That’s a lot of brainpower, and a lot of financial responsibility, trying to put forth a good answer.  Nevertheless, the question is still asked.