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Updated almost 8 years ago,
Cap Rates will the stay low or increase with higher interest rate
Interest rates for multi fam loans are up about 1% since the summer. The fed wants to raise rates to 2.5-3% over the next few years. How will this impact cap rates? Will investors take the long view and suffer less cash flow for a few years expecting to refi at lower rates or will cap rates increase 20%, 1- 1.5% and building prices fall 20%?