While uncertainty remains around a potential “trade war” with China, according to the minutes from the most recently released Federal Reserve meeting on March 20-21 policymakers felt that the U.S. economy would firm further and that inflation would rise in the coming months. Core CPI inflation has increased at a 2.9% annual rate over the past year and unemployment remains low. This has led several economists to believe that the Federal Reserve will raise interest rates three more times in 2018.
What bank tightening in the construction financing market means for developers.
Over the last few years, the flow of commercial construction loans has slowed as bank lenders – traditionally the primary source of construction capital – have taken a step back to comply with recent regulations and protect against a potentially overheated market.