09/18/2024
Over the years, I have come to realize that many people struggle with understanding how interest rates work, specifically the Federal Reserve's process. I recently drafted a newsletter that I sent out to several people discussing this topic.
Bullet Points:
1. The Federal Reserve uses the Federal Funds Rate to help control inflation and unemployment.
2. The rate they report is not the rate at which a typical consumer can borrow money.
3. The Federal Reserve's increases and decreases in rates will affect local interest rates, but sometimes, by the time the new rate takes effect, the market has already priced the change into their offerings. On the flip side, a lower rate could come with skepticism from the market and take a while to be realized.
Please give me a call if you are looking to make decisions about buying or selling land. I will help you navigate these cycles and maximize the value of your transaction.
