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For those of you who are regular visitors to these pages, you know that we are not inclined to talk about politics. That said, we do sometimes weigh in when potential legislation that impacts commercial real estate comes up on radar. The run-up to big elections is often one of those times.
In the past few posts, we’ve focused on interest rates and the upcoming election’s effect on market velocity. We will probably get back to that again soon, but first, we turn attention back on our expanded 2024 update of our Wealth Cycle Series.
Last Thursday, the SBA lowered the interest rate for its popular 504 loan to 6.04%, a 16-basis-point decline from July. In fact, this key rate for owner/user acquisitions has been on the decline since peaking to just over 7% late last year.
This has been one of the most asked questions we get from our prospective owner/user buyers since the SBA 504 mortgage rate peaked at 7.01% back in November of 2023. The answer is: it already has, and it’s about to move even lower in the coming weeks.
In light of the major announcement by President Biden to bow out of the November election, we are postponing the posting of our final thoughts on the Wealth Cycle, which we have focused on over the last couple of months.