WASHINGTON, DC—The Federal Reserve Bank ended its quantitative easing program last week on a satisfied note. The program accomplished what it was supposed to, the Fed said: it stabilized the economy during a time of upheaval and significant unemployment.
In truth, though, the impact of the program will be with us for some time. The Fed has only stopped buying these securities; it still holds a massive amount on its books. The bottom line for commercial real estate: it will be business as usual in terms of rates and policies for at least the next six months.
"There has always been a concern in the real estate industry about the impact on interest rates when the QE program ends," Ann Hambly of 1st Service Solutions, tells GlobeSt.com. "We now know that the end of the QE program does not equal a rise in the Fed Funds rate immediately, according to the announcement by the Federal Reserve."
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