The Federal Reserve on Wednesday voted to keep interest rates steady, dashing any hope the real estate market had for a reduction in interest rates to bring down the cost of borrowing, boost prices and drive transactions.
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Some deals that were in the initial stages at the end of 2025 are starting to fall apart, according to Steven A. Shoumer, co-chair of the real estate practice at Blank Rome LLP. While rates are a factor putting pressure on real estate developers, increased pricing for materials or potential delays are also contributing to overall trepidation.
The majority of Shoumer's practice is representing national bank construction lenders, and he said he is keenly aware of the risks for real estate developers of projects not coming to fruition. Keeping rates steady doesn't alleviate any of those risks.
"As you would imagine, the more rates stay where they are, and don't decrease, it continues to make dealflow on the lending side choppy," said Shoumer.
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"Fed Keeps Rates Steady, to Dismay of Most in Real Estate," by Georgia Kromrei was published in Law360 Real Estate Authority on March 18, 2026.