Rising interest rates are unlikely to push cap rates up this year, counter to what many investors may believe, according to new analysis from Marcus & Millichap.
The interest rate on ten-year Treasuries has nearly tripled since the end of July, when it was at an all-time low near 50 basis points. But rates remain near historical lows, a good sign for investors, according to John Chang, Senior Vice President and Director of Research Services at Marcus & Millichap.
It's true, Chang says, that there's been upward pressure on rates for the last six months, and some economists have increased 2021 forecasts to the 8% range.
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