The Philadelphia region’s development industry doing well, even after the initial shock of the COVID-19 pandemic. Interest rates, which dipped to historic lows, however, are probably going to increase again.

From The Philadelphia Inquirer:

But as inflation soared over the past year, the Federal Reserve has begun pumping the brakes on the economy, raising interest rates and making borrowing more expensive. These changes have had an outsized impact on real estate deals, which unfold over years and are dependent on large inflows of investment capital.

The borrowing environment is expected to only get tighter. A stronger than anticipated July jobs report led many Fed watchers to predict that a substantial further rate hike will come in September and that additional increases may now occur later this year instead of in 2023.

 

Photo Credit: Heather Khalifa for the Philadelphia Inquirer