Interest rates continued their descent after recently peaking during the first quarter of 2019. By the fourth quarter of 2020, rates reported by bankers to the Kansas City and Chicago Federal Reserve had reached 50-year lows. Lower borrowing costs for operating loans has boosted liquidity while historically low real estate interest rates have helped support land values. This downward trend in rates is partly supported by structural monetary policy changes enacted during 2020 in response to COVID-19.  

Next up: watch for the Federal Reserve to start talking about talking about raising interest rates.  

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