Are interest rates high during inflation
Cap Rates & Interest Rates. If, and more realistically, when interest rates begin to rise to combat higher levels of inflation, cap rates more than likely will also be affected however the impact will not necessarily be uniform across all types of real estate. This is the difference between the nominal interest rate and the rate of inflation. An interest rate of 2% when inflation is 0% is good news for savers but an inflation rate even as high as 10% is