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The US Federal Reserve just released new data on the state of loan growth in the US financial system, and the results were shocking. For the last few weeks of March, new residential real estate loans have shrunk by the largest weekly amount on record. The US housing market has been in correction mode for the last year, but has been facing headwinds such as low inventory, but that could all change in the coming months with the credit crunch that some say is currently unfolding.
We highlight Morgan Stanley's new warning to real estate investors, specifically focused on the looming risks of refinancing real estate loans that currently have 3% rates, but need to refi at 6%. According to Morgan Stanley real estate investors currently face a trifecta of risks, most importantly the new rates the 3.2 trillion dollars of real estate loans that need to be refinanced this year, all while commercial real estate values are forecasted to fall by up to 40% in the next 16 months.
If you are a real estate investor, home buyer or home seller this video is a must watch.
This video is not financial advice.
Morgan Stanley’s DIRE Warning to Real Estate Investors (Housing Market Loans SHRINK By LARGEST on Record)