Berkadia’s Beyond Insights Quarterly Market Update discusses the Fed’s September rate cut, specifically the recent labor market prints that gave the Fed reason to begin their cutting cycle. The quarterly market update details the recent trends seen in GSE financing over the course of the current economic cycle, noting a shift in loan purpose, term, and rate type. The piece also details the treasury market volatility caused by the lack of forward guidance from the Fed, and how this volatility has affected the multifamily transaction space.

Key Takeaways:

• The FOMC voted to cut rates by 50bps at the September meeting, kicking off the cutting cycle.
• Fluctuations in U.S. Treasury yields significantly affect borrowing costs and investor confidence, influencing the multifamily market.  
• Managing Treasury volatility is crucial for decision-makers to navigate market complexities and maintain investment activity.