Rising Interest Rates Impact Real Estate Market
Inflation remains above the Fed's 2% target as investors expect more rate increases after the central bank's latest 25-basis-point move.
- Earlier this month, the Federal Reserve raised its benchmark Federal Funds Rate by 25 basis points, lifting the target range to 3.75%-4% to address inflation running above the 2% target.
- Fed Chair Kevin Warsh described the move as removing "a dose of accommodation," signaling further increases are likely as the central bank continues efforts to tamp down persistently high inflation.
- New York Fed President John Williams called another rate hike this year a "reasonable expectation," while financial markets price in a 25-basis-point increase at the October meeting and potentially in December.
- Ares Capital faces direct balance sheet impacts, as $11.8 billion of its $15.9 billion in outstanding debt was floating-rate at the end of the second quarter, alongside 94% of new investment commitments.
- Despite increased borrowing expenses, Ares Capital maintains a 17-year record of stable-to-growing dividends, positioning the company to capitalize on higher interest income from its floating-rate investment portfolio.
11 Articles
11 Articles
FED HIKES RATES FOR FIRST TIME IN THREE YEARS — Here's What It Just Did to Your Credit Card, Mortgage and Savings
The Federal Reserve raised its benchmark rate to a 3.75%–4% target range this month, the first increase since July 2023, pushing borrowing costs higher for credit cards, HELOCs and new mortgages while savings yields are expected to creep up.
Fox Business
Fed raises rates for first time in years: What it means for your wallet
Ramsey personality George Kamel explains how the Fed's first interest rate hike in more than three years could affect credit cards, mortgages and savings accounts.
Why I'd Still Buy This 10%-Yielding Dividend Stock After the Fed's Latest Hike
Key PointsThe Federal Reserve just hiked rates for the first time in three years. It will likely continue to push them higher until inflation comes down. Ares Capital has performed well during past rate-hike cycles. 10 stocks we like better than Ares Capital › The Federal Reserve just hiked rates for the first time since 2023 as it tries to tamp down persistently high inflation. Inflation is currently running above 3%, higher than the Fed's 2% t…
Why the Fed's rate hike just came at the worst possible moment
On Sept. 16, the Federal Reserve raised its benchmark interest rate by 25 basis points to a target range of 3.75% to 4% — its first rate hike in more than three years. Chairman Kevin Warsh described the move as essential to restoring the Fed’s credibility on inflation after more than five years of prices […]
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