Not even sure what I want to say, but there's probably at least 4 inter-linked conversations in the tag line. Kind surprised nobody has started one here yet. I can't deal with Pelican on these as they go from OT into PARF in half a dozen posts.
I've been privy to quite a number of conference calls in the mornings that my wife has had in the last 2 weeks, she's in capital market debt financing for commercial and multi-family residential. She managed to time our refinancing of 2 properties a couple of months ago (low 3's). Right now the crunch she's seeing (and there's quite a few) is in 10-31 exchanges, a loan maturity that forces a refinance, and of course any deals that anybody is trying to put together shows cap rates going to rise, debt ratio's changing by lenders (and they are looking far closer at any deals), etc. etc. The big deal is that buying power has shrunk... a former 65% ltv is now a 55% ltv, and sellers are not going to be able to get what they want to get. Sellers are going to pause, unless they need to sell.
Interest rates have pushed buyers out of the home purchasing market (for sfr buyers) which means that rental rates will remain flat and possibly rise as we have limited housing in our country. At the same time inflation has pushed gas and food prices up dramatically, so how much of an increase can rentals sustain and we see continued rental rate increases here in the Seattle area for housing. Will housing prices go down?
I read a report today that said that 36% of those making $100K or more are living paycheck to paycheck, that's up 50% from a couple of years ago. The number is 50% for those making $50K to $100K.
Can the Fed give us a soft landing? Or do they have any control at all.... Powell's speech wasn't clear at all, he seemed to say two things at once, and since when is the fed involved in oil?
Just a casual observer ;-) Does this affect our hobby?
E
I've been privy to quite a number of conference calls in the mornings that my wife has had in the last 2 weeks, she's in capital market debt financing for commercial and multi-family residential. She managed to time our refinancing of 2 properties a couple of months ago (low 3's). Right now the crunch she's seeing (and there's quite a few) is in 10-31 exchanges, a loan maturity that forces a refinance, and of course any deals that anybody is trying to put together shows cap rates going to rise, debt ratio's changing by lenders (and they are looking far closer at any deals), etc. etc. The big deal is that buying power has shrunk... a former 65% ltv is now a 55% ltv, and sellers are not going to be able to get what they want to get. Sellers are going to pause, unless they need to sell.
Interest rates have pushed buyers out of the home purchasing market (for sfr buyers) which means that rental rates will remain flat and possibly rise as we have limited housing in our country. At the same time inflation has pushed gas and food prices up dramatically, so how much of an increase can rentals sustain and we see continued rental rate increases here in the Seattle area for housing. Will housing prices go down?
I read a report today that said that 36% of those making $100K or more are living paycheck to paycheck, that's up 50% from a couple of years ago. The number is 50% for those making $50K to $100K.
Can the Fed give us a soft landing? Or do they have any control at all.... Powell's speech wasn't clear at all, he seemed to say two things at once, and since when is the fed involved in oil?
Just a casual observer ;-) Does this affect our hobby?
E
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