The Implications of Higher Interest Rates for US Commercial Real Estate
Overview
The US Federal Reserve is beginning to talk about diminishing its quantitative easing program if signs of a sustainable economic growth path emerge. This move, which means an eventual return to the yield of mortgage-backed securities and Treasury bonds being established by the market, has set off a reaction in the global stock, bond and commodity markets. In this white paper, Heitman argues that while unwinding the Fed’s extraordinary involvement in the financial markets will be complicated, this is a positive development.