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Real Estate Investor Sam Zell Sees the Fed Raising Rates Close to 6%
The Fed will need to rate interest rates closer to 6% to meaningfully ease inflationary pressures, said legendary property investor Sam Zell. A “shocking event” was mortgage rates more than doubling this year, the billionaire told Fox Business. Zell also sees the US economy falling into a recession. Loading Something is loading. Thanks for signing up! Access your favorite topics in a personalized feed while you’re on the go. download the app There’s little comfort to be had in a recent softening in mortgage rates because the Federal Reserve is likely to continue with its string of rate hikes to catch up in taming inflation, billionaire property investor Sam Zell…
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Real Estate Vultures Circle Distressed Assets As Rates Rise
Patrick Carroll (Illustration by The Authentic Deal with Carroll and Getty) Past 7 days, apartment developer Patrick Carroll introduced a venture to provide rescue money to apartment house owners across the Solar Belt. The system programs to make investments $250 million in equity to troubled borrowers. Carroll is not alone. As climbing interest fees and a history sum of financial debt place far more authentic estate entrepreneurs at risk, a rising variety of gamers are preparing to feast on distressed assets. Business lending huge Greystone mentioned Monday that it experienced shaped a undertaking with Inlet Authentic Estate Funds to give small-expression distress financing to struggling owners. And Barry Sternlicht, whose…
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What the highest mortgage rates in 14 years are doing to Twin Cities real estate
Rising mortgage rates put a lid on home buying and selling last month in the Twin Cities. This week, mortgage rates topped 6% for the first time in 14 years. The 30-year fixed-rate mortgage averaged 6.02 %, according to Freddie Mac. That was up slightly from the previous week and more than double the rate offered a year ago. On Friday, a monthly sales report from the Minneapolis Area Realtors showed the housing market in the Twin Cities inching toward a more balanced market, albeit much more slowly than in some parts of the country. “We’re seeing a less competitive landscape as the market has slowed given current interest rates,”…
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Canceled Contracts Pile Up As Real Estate Buyers, Lenders Reckon With Rising Rates
Some commercial real estate deals are falling apart across the country as the market reels from the highest interest rate environment in over a decade and clouds of economic uncertainty are gathering. Both construction loans and financing to purchase properties will get more expensive with the Fed’s decision. As borrowing costs rise, the prices for everything from out-of-favor assets like office buildings and retail to warehouses and apartments are declining as buyers get nervous about future values. “No one’s immune,” said Eddie Lorin, an affordable, workforce and mixed-income housing developer who leads California-based Strategic Realty Holdings. “Everybody is getting repriced.” The Federal Reserve Bank officially increased interest rates by three-quarters of a…
