Lower Interest Rates Should Drive More Acquisitions in the Multifamily Sector

As the Fed softens its stance on interest rate hikes, multifamily investors are likely to take advantage.

Borrowers have an unexpected second chance to get low-interest financing to buy or re-finance apartment properties, thanks to growing worries about the slowing U.S. economy.

This month, officials at the Federal Reserve cancelled plans to raise benchmark interest rates in 2019, after a weak jobs report and lowered expectations for economic growth.

So far, the bad news for the broader U.S. economy has been good news for apartment building owners and investors. Interest rates for permanent loans on apartment properties went back to roughly the same level they were nine months ago, in the summer of 2018. Apartment sector experts now predict a flurry of deals, as buyers use low-interest rates to purchase properties and borrowers lock-in low rates on permanent loans.

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