3 REITs to Watch as Interest Rates Keep Falling
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The Federal Open Market Committee has paused its interest rate cuts, maintaining the overnight borrowing rate at 4.25%-4.5% after three consecutive cuts in late 2024. This decision impacts the real estate investment trust (REIT) sector, which is sensitive to interest rate changes.
February 03, 2025 | 12:15 pm
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American Tower Corporation (AMT), a major REIT, may experience a neutral to slightly positive impact as the Fed pauses interest rate cuts. Lower rates generally benefit REITs by reducing borrowing costs and increasing property values.
AMT, as a REIT, benefits from lower interest rates which reduce borrowing costs and can increase property values. The pause in rate cuts suggests stability, which is generally favorable for REITs.
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