Inflation cools in June, what about interest rates and house prices?

Inflation cools in June, what about interest rates and house prices?

When I was writing this article mortgage rates were hovering right around 7%.  At the same time June showed the first real slowdown in inflation in the last year.  The stock market soared on the slowdown in inflation while the federal reserve took a much more...
Banks new motto: Survive until 25, what does this mean for real estate

Banks new motto: Survive until 25, what does this mean for real estate

  There is a new mantra being used in small/regional banks that is “survive until 2025”.  In essence the theory is that rates will drop precipitously and basically “bail out” many banks’ portfolios.  This includes treasury holdings that are underwater, commercial...
Buy vs rent: 70% more expensive. What About Real Estate Prices?

Buy vs rent: 70% more expensive. What About Real Estate Prices?

  There is a huge premium to buying a property compared to renting.  It is now 70% more expensive to buy vs rent a property, which is considerably higher than at any time in the last fifty years.  What is causing the large divergence in renting vs buying?  What...
Buy vs rent: 70% more expensive. What About Real Estate Prices?

70 Percent more expensive to buy vs rent.  What does this mean for real estate prices?

There is a huge premium to buying a property compared to renting.  It is now 70% more expensive to buy vs rent a property, which is considerably higher than at any time in the last fifty years.  What is causing the large divergence in renting vs buying?  What does...
Will mortgage rates fall significantly in 2024?

Will mortgage rates fall significantly in 2024?

When I was writing this article mortgage rates were hovering right around 7%.  At the same time economists are predicting a sharp decline in mortgage rates and a booming 2024 real estate market.  On the other hand, the chart above shows a much different picture. ...
Why are home prices rising while mortgage rates stay high?

Why are home prices rising while mortgage rates stay high?

It is a bit perplexing; mortgage rates are over 7%, well over double their lows, and yet real estate prices are once again heading higher after a minor pullback late last year.  Prices have pivoted from last fall to make a strong comeback and approach new highs.  What...