ARTICLE
The Federal Reserve’s latest rate cut of 0.5 percentage points saw an overall positive reaction, however, construction executives said the full impact of lower rates will take time to materialize as financing terms and project planning processes catch up to the new environment. In other words, while lower rates are encouraging for construction activity, it’s only part of the equation. “The interest rate cut is generally good news for the construction industry, as it reduces borrowing costs and can encourage more investment in new projects,” said Cory Moore, CEO of Big-D Cos., a Salt Lake City-based general contractor. “That said, to really move the needle, loan-to-value ratios will need to improve alongside the rate cut to make financing even more attractive.” Click here to read more insight from ConstructionDive on how the latest cut may impact the industry.
The Federal Reserve’s latest rate cut of 0.5 percentage points saw an overall positive reaction, however, construction executives said the full impact of lower rates will take time to materialize as financing terms and project planning processes catch up to the new environment. In other words, while lower rates are encouraging for construction activity, it’s only part of the equation.
“The interest rate cut is generally good news for the construction industry, as it reduces borrowing costs and can encourage more investment in new projects,” said Cory Moore, CEO of Big-D Cos., a Salt Lake City-based general contractor. “That said, to really move the needle, loan-to-value ratios will need to improve alongside the rate cut to make financing even more attractive.”
Click here to read more insight from ConstructionDive on how the latest cut may impact the industry.