The Mortgage Rate Pendulum Swings Yet Again
April 17, 2024
In today's edition of Above the Line, we explore key trends and challenges in the real estate sector, influenced by evolving economic indicators and market dynamics. From fluctuations in mortgage rates impacting buyer affordability, to significant transitions in commercial real estate driven by tech firm adjustments and looming tax-related concerns for borrowers and lenders.
Let’s dive in.
The Mortgage Rate Pendulum Swings Yet Again
Yahoo Finance
This article highlights the latest shift in mortgage rates, touching almost 7.5% as per recent findings from Mortgage News Daily. The rise reflects broader economic sentiments, featuring stronger job growth and persistent inflation, which are affecting not just mortgage rates but also the overall affordability and inventory levels in the housing market.
Real Estate Borrowers Should Avoid Cancellation of Debt Income
Bloomberg Tax
Craig Stern from Mazars provides a deep dive into the pitfalls of debt cancellation income, especially pertinent as $929 billion in commercial real estate debt is due this year. Tax professionals and borrowers alike must navigate these waters carefully to mitigate potential tax impacts amid refinancing challenges.
Big Tech’s Big Retreat from U.S. Office Market
The Real Deal
Major tech companies are scaling back their office footprints, signaling a significant change in the commercial real estate sector. This shift could have long-term implications for office landlords and urban retail businesses, exacerbating the challenges posed by high vacancy rates.