If you missed it (here is a link), last week I was interviewed in Mortgage Professional America on what happens to mortgage rates and real estate as a result of the huge economic news last week with jobs slower and energy prices skyrocketing.
What does the recent Economic News mean for real estate?
Mortgage Bankers Association (MBA) senior vice president and chief economist Mike Fratantoni signaled that he didn’t see lower rates on the horizon anytime soon.
“The job market is softening and inflation is expected to increase due to a spike in oil prices resulting from the war in Iran,” he wrote after the latest employment data release.
“Although this month’s job numbers were weaker than expected, we do not expect the FOMC [Federal Open Market Committee] to cut rates anytime soon given the heightened inflation risk.”
Here is What I had to say about the impacts of the war and labor softening
Glen Weinberg of Fairview Commercial Lending also sees rates either holding steady or moving slightly higher amid the current volatility.
Still, that prediction comes with two caveats. “First, if the Iran war resolves quickly, it could put some downward pressure on rates – but that’s a wildcard,” he told MPA. “On the other hand, if jobs weaken substantially more, that would put additional pressure on the Fed.
“Unfortunately based on the data, we could be entering a period of stagflation – rising inflation with a softening economy – which would be a huge problem for the Federal Reserve to resolve, especially in the age of huge deficit spending which is putting upward pressure on rates.”
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Glen Weinberg personally writes these weekly real estate blogs based on his real estate experience as a lender and property owner. I’m not an armchair reporter/writer. We are an actual private lender, lending our own money. We service our own loans and own commercial and residential real estate throughout the country.
My day job is and continues to be private real estate lending/ hard money lending which enables me to have a unique perspective on the market. I don’t accept any paid sponsorships or ads on my blog to ensure accurate information. I’ve been writing this for almost 20 years and have over 30k subscribers. Please like and share my blogs on linkedin, twitter, facebook, and other social media and forward to your friends 😊. I would greatly appreciate it.
Fairview is a hard money lender specializing in private money loans / non-bank real estate loans in Georgia, Colorado, and Florida. We are recognized in the industry as the leader in hard money lending/ Private Lending with no upfront fees or any other games. We fund our own loans and provide honest answers quickly. Learn more about Hard Money Lending through our free Hard Money Guide. To get started on a loan all we need is our simple one page application (no upfront fees or other games). Learn how to find a reputable hard money lender and why Fairview is the best hard money lender for investors.
Written by Glen Weinberg, COO/ VP Fairview Commercial Lending. Glen has been published as an expert in hard money lending, real estate valuation, financing, and various other real estate topics in Bloomberg, Businessweek ,the Colorado Real Estate Journal, National Association of Realtors Magazine, The Real Deal real estate news, the CO Biz Magazine, The Denver Post, The Scotsman mortgage broker guide, Mortgage Professional America and various other national publications.
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