Michael Eisenga Predicts What Rates Are Going to Do in the Next Five Years

3 min readJul 1, 2021


Originally published on ktvn.com

Successful business and real estate investor Michael Eisenga explains what he expects will happen with rates in the nearest future and five years from now.

Michael Eisenga is the President of both American Lending Solutions, a mortgage lending company that he founded and operated from 2000 to 2018, and First American Properties. He has a track record of creating and operating successful businesses, and present and future rates are very much on his radar. Eisenga discusses more on what rates are predicted to do in the upcoming year and the five years following.

“Rates will most likely go up slightly, but no one knows for sure,” said Mike Eisenga. Economists state that interest rates are predicted to continue to increase, but inflation is not to blame for the rise. The United States government needs to keep rates low for budgetary reasons. Higher rates by even one percent will add an estimated 270 billion in interest payments.

Another reason why the United States government needs rates to remain low is that other nations have lower rates than the United States. Even in some European countries, the rates are negative, which means people are paying for their money to be taken. When negative interest rates occur, banks yield a storage charge for cash deposits, taking away the chance to earn interest income.

The result of the United States raising rates too much compared to other nations in areas like Europe will drive up demand for United States treasuries, which ultimately will boost the value of the United States dollar. Though that might sound like a positive conclusion, due to the rates in other nations, an increase in the United States dollar value could hurt the United States in international trade as it would make any exports to other countries more expensive, an expense consumer in other nations might not be willing to pay.

As the American nation starts to recover from the coronavirus pandemic, Eisenga says that rates will most likely remain in the same range for the rest of the year. After that, rates for the next three to five years will depend on government policies instituted and the effects of such policies but are predicted to stay in the same .50 percent range of where they are now.

“However, if rates were to increase in any significant manner, the climb will affect many asset classes. Stocks will drop as other options for investment for a meaningful return will be available, as will commercial real estate as cap rates for those investments will rise with interest rates and consumers and businesses will face higher borrowing costs,” said Eisenga.

In addition to the effect of increased rates, housing prices and sales will lag, and home prices will level off or most likely fall as fewer buyers will enter the market, and affordability of homes at current price levels will be affected.

About Michael Eisenga

Michael Eisenga is a commercial real estate investor, entrepreneur, and proud father of three boys. His wide range of skills includes commercial real estate investing, property management, assisting living facility operation, leadership, strategic planning, public policy, and community outreach. Eisenga is most passionate about finding and improving profitable investments. Lately, he has been focusing on fueling development in smaller communities through assisting living facilities.