Shadow
Podcast

Federal Reserve

Performance Property Real Estate Question

How Housing Reform Cut Inflation In Minneapolis

Q: My wife and I have been saving for a down payment for a new home for quite some time. Now, mortgage rates are so high, we can’t afford any of the homes we had our eye on before. We should have bought before mortgage rates rose. What can be done to make housing more affordable? Keith, Winfield, NJ A: Mortgage rates are much higher than they were in the recent past and that does certainly reduce how much you can pay when you buy a home. The Federal Reserve has been actively trying to tame inflation for some time. Since March 2022, the central bank has increased its benchmark interest rate more than 10 times. The most recent inflation […]

continue reading

Real Estate Insight

Mortgage Rates Shot Higher Last Week

Mortgage rates shot higher last week, as economic data stoked more fear that the Federal Reserve will not lower interest rates anytime soon. In turn, mortgage demand dropped to the lowest level since the end of February.

continue reading

Real Estate Insight

Credit Conditions Tightened For Builders And Developers In Q1 2022

Credit Conditions Tightened For Builders and Developers in Q1 2022 as Indices from the NAHB and the Federal Reserve indicate tightening credit conditions for the first time since mid-2020.

continue reading

Performance Property Real Estate Question

Huge Risk To Buyers Of Newly Constructed Homes

Q: Gerald, we signed a contract to buy a summer home last year.  We expected the builder would be finished by now, but it has taken much longer than expected.  Mortgage rates have gone up a lot.  Can we back out and if we do, will we lose our deposit? Dalia, Edison, N A: Home buyers who signed contracts to buy newly constructed homes in 2021 are potentially facing almost double the mortgage payments they may have initially expected because mortgage interest rates have risen from 3% to almost 5.5% as the Federal Reserve started raising short term interest rates.  There is always a greater mortgage interest rate risk whenever a real estate transaction takes longer to be completed.  Labor […]

continue reading

Performance Property Real Estate Question

How Fed’s Rate Cut Will Affect Housing

Q: How will the fed’s new rate cut affect housing? Haley, Montauk, NY A: The Federal Reserve announced that it would cut interest rates for the first time since the last recession. Economists are split on the immediate impact it will have on the housing market—what else is new?! Borrowers with adjustable-rate mortgages and commercial real estate loans will benefit from the rate cut. The important issue is how and if the fed’s rate cut will affect mortgage rates. The chief economist at realtor.com doesn’t believe the Fed’s rate cut will lead to a drop in longer-term mortgage rates because the rate cut announcement was anticipated. However, a rise in mortgage rates could further weaken already slowing housing markets, as […]

continue reading