Since March 17, 2022, the Federal Reserve has increased interest rates 11 times, in hopes of reducing the inflation rate down to their stated goal of 2.0%. Since inflation remains elevated, the Fed is considering more interest rate hikes in the future.

The federal funds rate now sits at a target level of 5.25% to 5.50%, the highest since 1991. The last time the federal funds rate was above 5.0% was 2006, and we all remember how that story ended. These higher interest rates have significantly increased the cost to build or buy a home, office building, or practice, and the economy is now showing some signs of a slowdown.