Can Mortgage Rates Go Lower?

September 11, 2024



In this edition of Above the Line, we explore the potential for further drops in mortgage rates, examine tax-saving strategies through opportunity zones, and analyze the shifting dynamics in Los Angeles' hotel market. These trends offer valuable insights for investors and professionals navigating today's complex economic landscape.

Let's dive into the details that matter for our industry. 

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Can Mortgage Rates Go Even Lower?
HousingWire
Mortgage rates have already dropped almost 2% from their 2023 highs, but there's potential for further decline. This possibility hinges on continued economic weakness, improved mortgage spreads, and a more dovish Federal Reserve stance, potentially pushing rates below 5.75%.

Opportunity Zones and Other Gain Deferral Strategies Save on Taxes
Accounting Today
The federal opportunity zone program offers a flexible tax deferral strategy for investors with significant capital gains. This program, along with other strategies like 1031 exchanges and Delaware statutory trusts, can provide substantial tax savings and diversification opportunities for real estate investors.

Lack of Hospitality: LA Hotel Sales Drop $800M Since Last Year
The Real Deal
Los Angeles County's hotel market is experiencing a significant shift, with total sales volume plummeting 79% in the first half of 2024 compared to the same period last year. The market is favoring smaller properties that require less capital, influenced by factors such as higher interest rates and new property transfer taxes.

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