If you've been following the news over the past year, you've seen headlines about soaring interest rates, subdued inflation, record-high bond yields, a possible recession, and how this will affect your mortgage. To make sense of it all, it helps to decipher some basic economic principles. We know that interest rates affect mortgage rates, but the truth is a bit more nuanced. Fixed-rate mortgage rates are determined based on the Government of Canada's five-year Treasury yield, which in turn is influenced by U.S. Treasury bonds. Adjustable-rate mortgages are influenced by the Bank of Canada's monetary policy – rising and falling…
Author: Private Lending Agent
Key things to know this month: Home sales in May were 485,000, up 9% from April. Home sales forecasting models predict 519,000 home sales in June and 500,000 in July. The post-pandemic recovery is well underway and appears to be returning to a normal market cycle. As the summer season gets underway, the real estate market continues to see dynamic change. 2024 has been a year of steady growth in home sales, with each month surpassing the previous in terms of the number of sales closed. This is certainly a breath of fresh air after what seemed like an eternity…
ReHome is a marketplace platform that helps resettled refugees by accelerating their matching with safe rental housing. We help bridge the communication gap between landlords and resettlement agencies to clearly align timelines. We are currently raising funds to expand our mission of revitalizing a welcoming rental market for refugees across the United States. We exist for impact, not return on investment, and we need your support to make our vision a reality. Their first fee-for-service, ReHome Matching Services (RMS), charges settlement providers a $500 success fee when a client moves into a unit they matched with through ReHome. The web…
Veteran strategist Chris Vermeulen said the U.S. real estate market could be facing a major correction.Technical Traders' chief market strategist said there were worrying signs in the property sector as borrowing costs are expected to remain high for a long period of time.He said construction starts for single-family homes and apartment complexes are plateauing after a sharp decline last year, a trend he said is similar to that seen before the 2008 home price correction. The stabilization in construction activity is likely due to the surge in investment that has hit the industry, Vermeulen said, but the real estate sector…
Downward angle icon Downward angle icon. iStock; Rebecca Zisser/BI Strategist Chris Vermeulen said the real estate market could soon experience a significant “downturn.” Signs of construction activity mirror the period leading up to the 2008 crash. “People don't realize that the real estate market is primed and ready for the next big downturn,” he said. Veteran strategist Chris Vermeulen said the U.S. real estate market could be facing a major correction.Technical Traders' chief market strategist said there were worrying signs in the property sector as borrowing costs are expected to remain high for a long period of time.He said construction…
urfinguss/iStock via Getty Images Today we look at the state of the commercial real estate (CRE) sector. Things seem to be getting worse and worse. If this part of the economy continues to deteriorate, it will have a major impact on banks, especially the regional banking system. This, in turn, could be a major headwind for the economy as a whole. It seems like every day a new CRE property defaults or goes into foreclosure. On Monday this week, my email feed was notified that $211 million worth of CMBS for a mixed-use entertainment center in Los Angeles had been…
Top Line A senior Federal Reserve policy official said Tuesday that he doesn't expect interest rates to fall in 2024, dealing a new blow to widespread market expectations for interest rate cuts to stimulate the economy in the near future and dampening optimism from the Biden administration that cuts will come ahead of the presidential election in November. Federal Reserve Governor Michelle Bowman doesn't expect interest rates to fall this year.AFP via Getty Images Key Facts Michelle Bowman, one of the seven Federal Reserve governors and one of 12 voters on the Federal Open Market Committee, said she doesn't expect…
When reading the renter and consumer press, one can sometimes see hostility towards landlords, and in fact some people seem to think that landlords should be eliminated altogether. But landlords, some landlords are necessary. Why do you need a landlord? 1. Not everyone wants to own their own home Gone are the days of joining a job at 16 and retiring from the same company some 50 years later with a chiming presentation clock (or something similar). People tend to change jobs frequently, which often means moving to a new place. You may not want to go through the hassle…
Kara Masterson There is nothing more stressful for a homeowner than having your air conditioner break down in the middle of a hot summer. Not only can it make your home unbearably hot, but it can also cause a variety of other problems. In this blog post, we'll discuss the five things you should worry about if your air conditioner breaks down in the middle of summer. Health concernsWhen your air conditioner breaks down during the hot summer months, it can do more than just cause discomfort. Heat illnesses such as dehydration, heat exhaustion, and heat stroke can result from…
The housing market continues to face the challenge of rising home prices, leading the Biden administration to announce new initiatives to address the pressing issue. However, in an exclusive interview with Yahoo Finance, U.S. Treasury Secretary Janet Yellen tempered expectations, emphasizing that there is “no silver bullet to solve the housing affordability crisis.”For deeper insight, Brad Case, Chief Economist at Middleburg Communities, shares his perspective on the ongoing home affordability dilemma affecting homebuyers in the United States.Case highlights two factors driving the current market trends: first, home prices are rising due to a surge in demand, and second, he notes…