Today, a 30-year fixed residential real estate mortgage rate is 7.53%, an SBA 7(a) business acquisition loan is 11.50%, and an SBA 504 Real Estate/Equipment loan is 6.59%.
As we all know, rates have risen dramatically since 2020, as depicted by the chart below.
That said, according to Federal Reserve Chair Jerome Powell's comments at yesterday's meeting in Jackson Hole, Wyoming, the potential for further interest rate hikes is high if the economy and job market do not weaken significantly.
In summary, Powell's remarks indicate the possibility of future rate hikes to protect against inflation and stabilize the economy. The Fed remains cautious and will carefully consider all relevant data before taking decisive actions. But most certainly indicated that rates will go higher and that the economy has yet to experience the full effects of their rate-hiking actions.
All in all, play it smart and keep your powder dry.
The FED will not stop until the market weakens.
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