After almost a decade, the Federal Reserve increased interest rates from .25% to .5% this past December. The raise is a result of the U.S. Federal Reserve attempting to normalize economic conditions and regulate inflation. This change signals the end of the zero interest rate policy brought on as the result of the 2008 U.S. financial crash.
What does this mean for 2016?
Interest rates are predicted to increase slowly over the next two years. Fed Chair Janet Yellen stated “The first thing that Americans should realize is that the Fed’s decision today reflects our confidence in the U.S. economy.” As it stands the decrease in unemployment has not affected inflation. Should unemployment begin to affect inflation, the Federal Reserve may be inclined to increase the speed of rate changes.
This decision is likely to affect the rest of the world. Comparatively, the United States economy is still the world’s largest economy ($17,968 billion in GDP) with China as a close second ($11,385 billion in GDP). A rise in federal interest rates indicates a stronger U.S. dollar. While a stronger dollar is great for Americans seeking to purchase products in other countries, it also means that foreigners may be less likely to purchase goods from America given the increased exchange rate.
As the bank short-term interest rate increases, the cost of a loan will also increase incrementally. JPMorgan Chase, Bank of America, Wells Fargo, and U.S. Bancorp raised their lending rate .25% in response to the Fed’s decision.
Other outlets likely to feel the effects of this decision include credit card rates and adjustable mortgage rates. While fixed rates including homeowners with fixed-rate mortgages and those with federal student loans remain the same.
Additionally, as interest rates gradually increase, the interest earned on savings accounts will yield higher returns. Although there will not be a drastic increase in returns, this is still good news for savers.
What does this mean to you as a hard money borrower?
Since hard money lenders source their funds from private investors, a change in the federal interest rate does not have a direct effect on hard money borrowers. However, effects of the rate change may cause competition amongst hard money lenders, and in turn affect your borrowing rate.
What does this mean overall?
All in all, if the Federal Reserve sticks to a slow and gradual interest rate increase your finances are unlikely to change much in the near future.
Bellevue, Wash. – Intrust Funding was recently named the 40th fastest-growing private company in Washington by the Puget Sound Business Journal.
The Puget Sound Business Journal announced the rankings for the top 100 fastest-growing private companies in Washington at a public award ceremony at the Westin Hotel Seattle on Thursday, Oct. 8.
With over 500 people in attendance, this event honors companies who have achieved outstanding revenue growth over the past three years.
Among those ranked are sister companies, Heaton Dainard and Razor Investments.
The 100 recognized companies totaled nearly $3.74 billion in revenue for 2014.
For more information about the Washington’s Fastest-Growing Private Companies Award and the Puget Sound Business Journal visit their website here.
Intrust Funding is a leading direct lender that provides short-term bridge loans to commercial and residential real estate investors in need of fast capital in Western Washington. We pride ourselves on an unmatched ability to provide investor financing in as little as 48 hours, so clients can close quickly. By providing efficiency, integrity and transparency to our clients we are revolutionizing the lending industry.
Bellevue, Wash. – Inc.’s fifth annual Inc. 500|5000 list named Intrust Funding as the 1,189th fastest-growing private company in North America on August 12, 2015.
The award recognizes and honors entrepreneurs by ranking companies that demonstrate significant revenue increase for the past three years.
“We are honored to have made the Inc. 5000 Fastest-Growing Private Companies list. We strive to maintain fast-growth by continuing to provide superior service to our clients and by motivating our team to consistently challenge themselves,” said Will Heaton, co-founder of Intrust Funding.
The 3-day 2015 Inc.5000 Conference and Gala honoring America’s fastest-growing privately held companies will be at the JW Marriot from October 21-23, 2015 in Orlando, Florida.
About Intrust FundingIntrust Funding provides fair, short-term financial solutions to investors of discounted real estate as well as non-conventional borrowers. We provide our borrowers the opportunity to present all-cash offers with quick closing dates, allowing them to secure the best properties at a discount from the market.
The Inc. 500|5000 is a list of the fastest-growing private companies in the nation. Started in 1982, this prestigious list of the nation’s most successful private companies has become the hallmark of entrepreneurial success. The Inc. 5000 Conference & Awards Ceremony is an annual event that celebrates their remarkable achievements. The event also offers informative workshops, celebrated keynote speakers, and evening functions. For more information on Inc. and the Inc. 5000 Conference, visit http://www.inc.com/.
​​​Heaton Dainard, Intrust Funding, LimeLite Development, and Buck Buys Houses had the tremendous opportunity to give back to our community today and make a difference. In collaboration with Attain Housing, we had the pleasure of helping families in need by doing some good ol’ house and yard work. Our experience was incredibly rewarding and we absolutely look forward to working with AH again!
Attain Housing (formerly KITH) helps homeless and at-risk families with children in King County to become stable and self-sufficient. First, Attain Housing stabilizes families in 32 Attain Housing apartments and in units owned by others. Then, Attain Housing assists the families with services, including case management, which helps them make lasting life changes, leading to permanent housing. When you help Attain Housing, you help homeless families transform their lives, thereby strengthening our community.
To learn more, please visit attainhousing.org.