The commercial real estate market is showing signs of weakening, demonstrated by the pressures being felt by two of the market’s largest players amid higher rates and tighter financial conditions.
Homebuyers with good credit scores will soon encounter a costly surprise: a new federal rule forcing them to pay higher mortgage rates and fees to subsidize people with riskier credit ratings who are also in the market to buy houses.
Almost $1.5 trillion of US commercial real estate debt comes due for repayment before the end of 2025. The big question facing those borrowers is who’s going to lend to them?
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Americans have been battered by two years of negative real wage growth as personal savings are depleted while credit card debts jump to record highs. Shelter inflation continues to soar while housing affordability is at its lowest in decades.
Newsfeed: Living In Memphis Might Break Paycheck To Paycheck Cycle Read More »
The average rate on the 30-year fixed mortgage jumped back over 7% on Thursday, rising to 7.1%, according to Mortgage News Daily.
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Housing recessions matter because they are the ‘canary in the coal mine’ for economy-wide recessions. Not all economic recessions follow housing recessions1, but most housing recessions presage economic recessions.
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American households lost about $6.8 trillion in wealth over the first three quarters of 2022 as the stock market SPX, +1.43% DJIA, +1.58% COMP, +1.26% shed more than 25% of its value, the Federal Reserve reported Friday in the government’s quarterly financial accounts.
Rising costs have chipped away at most Americans’ standard of living. As inflation pressures continue, two-thirds of working adults said they are worse off financially than they were a year ago, according to a recent report by Salary Finance.
I write about mortgage rates every week, but recently, I’ve heard some sources chattering about what’s called the “real mortgage rate.” In a nutshell, this is the interest rate on mortgages minus the current inflation rate. “With inflation running so high right now, even though mortgage rates have risen, the real mortgage rate is a negative number,” says Kate Wood, home expert at NerdWallet. When the CPI was at 9.1%, for example, “if you had a mortgage with a 5% interest rate, your real mortgage rate is -4.1%,” she says. (See the lowest mortgage rates you can get here.)
Every year, states across the country compete with each other for people and their wealth as millions of Americans move between states. The stakes are large. A growing population for the winners means an increasing tax base, economic growth and investment. For the biggest losers, it means more difficulties in paying down debts, higher taxes and fewer investments for the future.