Industry News: Impact of The Fed's Rate Cut

On December 10, 2025, the Federal Reserve cut its key federal funds rate by 25 basis points, marking the third consecutive reduction and leaving many in the real estate industry feeling cautiously optimistic about what’s ahead.

How this impacts real estate:

• Lower borrowing cost for development: A rate cut reduces the cost of capital, improves margins, and allows more flexibility in structuring deals.

• Potential boost in buyer demand: Lower rates can attract buyers back into the market who were previously priced out, resulting in increased traffic and renewed market interest.

• Proceed cautiously: While a rate cut is positive news, it does not guarantee a real estate boom.

As we navigate the evolving real estate landscape, Flatwood Capital remains committed to staying ahead of interest rate dynamics and aligning our strategies to generate lasting value. The next rate decision is expected in early 2026, and the market will be watching closely to see how it shapes the path forward.

What trends are you watching most closely heading into 2026? 👀

Let us know in the comment section below!