Interest Rates Drop Due To COVID-19
While the negative impacts from the coronavirus seem to drag on, dropping interest rates could be a “silver lining” for some.
Reports show that land prices remain relatively steady and inflation, although slowed, will continue to grow. The report notes that this is the time to refinance a mortgage or equipment loan.
The interest rate setting body of the Federal Reserve changed their benchmark rate to zero in march and it is expected to stay that way at their next meeting in June. This could result in higher asset prices as borrowing costs will be lower and buyers can bid higher for equipment.
The Federal Reserve has said that they will not set a negative target rate but investors are preparing, just in case.