Municipal Interest Rates are Moving Up!
IT’S A FACT! After an unprecedented years-long run of super-low rates, the interest rates that are the basic metric for leases and bonds for local governments, districts and authorities have bottomed out and are moving back towards their long term, higher norms.
Did you know that the Federal Reserve has raised rates 4 times this past year alone. The Wall Street Journal quoted Fed experts as predicting more increases are on the way.
The bad news? Unfortunately you may have missed the very bottom on the interest rate curve. The good news? Rates are still going up. There is still time to lock in the current rising rates, before they move even higher.
What should your agency do? Consider these 3 Facts: 1) Municipal interest rates aren’t coming down anytime soon, 2) You know you’ll have to buy new police vehicles, public works, fire and other equipment this year or next, and 3) Inflation is back and pushing costs up at the same time. These aren’t luxury purchases, they’re essentials that you’ll have to buy and they are going to cost more with every passing day. Our recommendation? Lease-to-own now, save for years.
Rates are lower today.
If you don’t use them soon, you’ll lose them soon!
(sometimes it’s just that simple)