Capital Farm Credit and interest rates: Lock in a fixed-rate loan today!

Planning to start or expand an agribusiness this year? Here’s a simple look at what’s going on with interest rates and what it could mean for you if you’re thinking about borrowing money with Capital Farm Credit.

The Federal Open Market Committee (FOMC) voted Jan. 28 to hold the federal funds rate steady at 3.50%–3.75%.

“Available indicators suggest that economic activity has been expanding at a solid pace. Job gains have remained low, and the unemployment rate has shown some signs of stabilization. Inflation remains somewhat elevated,” they said.

Generally, the market does not currently expect large rate decreases, and we are likely operating near the “new normal” for interest rates.

The US Treasury Yield Curve that CFC uses for cost of funds shows that the yield curve is flat, which can mean similar rates for both long-term and short-term loans.

This means it can be a good time for borrowers to look at fixed rates that don’t change over time.

Why a Fixed Rate May Be Smart Right Now

• Rates aren’t expected to drop much more.
• Today’s rates are still low compared to most of history.
• A fixed rate gives you peace of mind — your rate stays the same, no surprises.

 
One of the biggest advantages of doing business with Capital Farm Credit is that you can obtain a rate conversion to switch to get a lower rate if interest rates decrease without refinancing.

This saves you time and money!

If you want help choosing between a fixed or variable rate, or if you want to understand what these numbers mean for your loan, our team is always here to help.  Contact your local CFC office today!