Market Alert: Bond Yields Rise, FED Tapping Breaks on Rate Cuts. Secure Your Cannabis Financing Now or Risk Higher Rates

Market Alert

It’s been quite the roller coaster over the last four months. In September the FED cut rates and by all indications many thought more cuts where coming into 2025 signaling a potential decrease in cannabis real estate finance and cannabis equipment loan rates to follow.

Yet an interesting thing happened in September with real estate financing rates actually ticking up after the rate cut. The culprit? An increase in bond yields that lenders use a a guide to price mortgages.

On January 9th 2025 the New York Post reported that mortgage rates had risen for four straight weeks on the back of the yield on the ten-year treasury climbing from 3.62% in September to 4.66%.

Even worse, they report “Interest rates have been climbing since the Federal Reserve signaled last month that it expects to raise its benchmark rate just twice this year, down from the four cuts in forecast in September.”

I love how they went from rate cuts, to rate increases and use the phrase “just twice”.

In any event, what does this mean for the cannabis industry?

In an already hostile lending environment, with more lenders abandoning the cannabis industry each and potential rate hikes on the horizon we’d recommend entering the market if you have a financing need upcoming and your business is ready.

Waiting might end up costing you a fortune.