Rate Cuts Bode Well for Real Estate

The U.S. Federal Reserve embarked on its long-awaited rate cut program with a half-point decrease in September 2024.

Periods of monetary easing have historically benefited Baron Capital Real Estate Funds. Lower interest rates and tighter credit spreads tend to support real estate valuations, reduce the weight of debt refinancings, and reignite the transaction market.

Baron Capital Real Estate Funds have excelled during rate cut periods

The Fed lowered rates by 75 basis points (three 25-basis-point cuts) in 2019 and 150 basis points in March 2020.