On June 15th, 2022, the Federal Reserve moved to increase interest rates by three quarters of a point, the highest increase in over 2 decades. The effects of this are already being seen in the short-term. Long-term, this will shrink transaction volume and push floating rates up even higher. One of Tauro’s principals/shareholders, Jack Carroll, noted how even before the announcement, bridge and construction lenders put a stop on their lending indefinitely. Not to say that every lender will be making this drastic of a move, but many are expected to update their terms. All future and established floating rate loans will be affected, and cap pricing is expected to rise in volume and cost.