Over 48 hours two banks failed for very different reasons. There is a saying in banking that when rates rise and easy money runs out, we will find the skeletons that have been lurking in plain sight. Are we in for a 2008 rerun? What caused the sudden...
In only a couple of months, the world has changed substantially. In December, inflation was supposedly decreasing rapidly and the odds of a soft landing were non existent. Fast forward a few months and inflation is running hot, consumers are spending like crazy,...
Beginning in March of 2023, Freddie Mac, the largest buyer of mortgages is drastically changing the seasoning requirements for any loans it purchases which basically means any new conventional conforming loan will have to follow the new rules. What big changes are...
The market currently has a fixation on interest rates. Essentially whatever interest rates do the market reacts accordingly. For example if rates rise, sales fall and vice versa. Are rates really the driver of the slow down in real estate sales? If rates...
There is definitely allot of doom and gloom heading into 23 with interest rates double their lows, inventory increasing, and prices coming off their highs. In every cycle there will be winners and losers. Where will the real estate opportunities be? Are their certain...
In 2023, NAR Chief Economist Lawrence Yun expects home sales to decline by 7%, while the national median home price will increase by 1% in his recent 2023 market update. On the flip side the most recent federal reserve economic commentary classifies the current...
Since Covid it seems like traditional patterns have been broken. I hear time and time again that X or Y is different and there have been fundamental changes. Is this true, is everything “radically” different now? Is a bear walking around in the snow a sign (zoom in...
The federal reserve bank of NY recently published a report showing consumer debt jumping to the highest levels ever recorded with every category growing from mortgages, autos, credit cards, lines of credit, etc… Is some consumer debt better/worse than others for the...
The prevailing theory is that this real estate cycle will be considerably better than others as so many people locked in rock bottom rates which will serve as “golden handcuffs” and prevent a meaningful increase in inventory. How accurate is this theory? What is the...
There is pretty much a universal theme that there will be a recession in the future. It is like saying that it might rain sometime in the next month. It doesn’t help you much without knowing approximately when it will rain and if it will be a light sprinkle or turn...
“Our model really works in upmarkets, it's going to work in flat markets, it's going to work in downmarkets,” chief financial officer Carrie Wheeler told analysts just 6 short months ago. Unfortunately today this statement could not be further from the truth. ...
A few weeks ago, the big news was 6% rates and now everyone suddenly woke up with stocks crashing and yields soaring to new highs and rates jumping again. What does this mean in the short term for interest rates? Is focusing on the 30 year mortgage rate the correct...
It will get much worse for the housing market and the mortgage industry. That’s the takeaway from a group of economists at Fannie Mae who slashed their forecast for 2022 home sales this week. Federal Reserve chairman Powell recently threw even more cold water on their...
Home values slipped for the second consecutive month as mortgage costs continue to sideline buyers. From June through August, prices usually decline about 2%, but this year they have fallen about 6%. At the same time, mortgage rates hit highs of around 6.4%. ...
As of the writing of this article, President’s Biden’s plan is to forgive 10k in student loan per each borrower and further extend the payment pause until year end. How will this forgiveness impact real estate prices, mortgage rates, and prospective purchasers? What...
The federal reserve did an analysis of what has led to the surge in housing prices and has a conclusive answer; the driver of high prices is not that we don’t have enough houses as the media has been claiming. What is the real culprit behind soaring prices? Is there...
If you haven’t gotten a haircut in a while, you are in for a surprise. Haircut prices like many other services in the economy are experiencing large increases. What does the increase in haircut prices mean for the economy and in turn real estate? Why are haircuts...
What a week it has been in the economy. The federal reserve is still struggling to contain inflation and as a result increased the fed funds rate .75%. After the announcement stocks roared back in a huge “relief” rally and mortgage rates plummeted. Shortly after,...
There has been an unexpectedly sharp downturn in demand to truck everything from food to furniture since the beginning of March and rates in the overheated segment that deals in on-demand trucking jobs - known as the spot market - are skidding. Why are trucking rates...
“A reckoning is due. Home prices and rents can’t separate as significantly as they have from their long-term fundamental trends without major issues arising in the marketplace,” said Ken Johnson, an economist at Florida Atlantic University, in an analysis. “Few...
While in other countries real estate is slowing, home price growth in 20 US cities picked up for the fourth straight month with Tampa, Florida, showing the biggest gains. March's reading was the highest year-over-year price change in more than 35 years of data, with...
One of the world’s bubbliest real estate housing markets is tilting from sellers to buyers with dizzying speed. Canadian home prices fell for the first time in two years as a rapid rise in interest rates looks set to threaten one of the world’s hottest housing...
ATTOM’s just released January 2022 U.S. Foreclosure Market Report shows there were a total of 23,204 U.S. properties with foreclosure filings reported in January 2022. That figure is up 29 percent from December 2021 and 139 percent from January 2021. Will we see a...
Where mortgage rates are heading seems to be the biggest question on everyone’s mind in real estate. As of this writing rates were around 5.821% which is substantially higher than any economists had predicted even a few months ago. What is causing the jump in...
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