When you do the common things in life in an uncommon way, you will command the attention of the world.
George Washington Carver
- Rising interest rates are threatening the housing market. . .and the economy.
- There’s a risk of rates rising faster than expected if retail investors sell their bond funds more aggressively.
- Market volatility is likely to continue. But conditions favor stocks over bonds. Be selective though: be wary of utilities and housing-tied sectors.
Stock and Bond Markets Remain Volatile
With uncertainty around economic growth and Federal Reserve policy, markets have lurched from one data release to another. The past week was no different, with mixed reports leading to continued volatility in both stock and bond markets. The Dow Jones Industrial Average declined for a third consecutive week, down 0.5% to 15,010. Meanwhile, the S&P 500 Index inched up 0.5% to 1,663 and the Nasdaq Composite advanced 1.5% to end the week at 3,657. Medium-term interest rates hit another multi-year high last week before pulling back on Friday. The yield on the 10-year US Treasury note climbed above 2.90%, its highest level since July of 2011, but ended the week roughly where it started at 2.82%.
Stocks experienced their worst weekly losses for the year last week, with the Dow Jones Industrial Average dropping 2.2% to 15,081, the S&P 500 Index declining 2.1% to 1,655 and the Nasdaq Composite sinking 1.6% to 3,602. Fixed income markets were not immune to the volatility, with Treasury yields experiencing their largest jump since June (prices move in the opposite direction of yields). The yield on the benchmark 10-year Treasury rose from 2.58% to 2.83%.
Rising Rates Threaten Housing. . .and the Economy
As interest rates have climbed, mortgage rates have followed suit. The cost of a 30-year conventional mortgage is now at about 4.7%, up from 3.6% in early May, and the monthly mortgage payment on a median US house has increased roughly $200 during the same period. As rates (and mortgage costs) have risen, mortgage and home sales activity has started to falter. A recent Mortgage Banker Association survey shows loan activity down by more than 50% from a May peak, and on Friday, the market learned that new-home sales plunged 13.4% in July, the biggest drop in three years.
The bond market quickly took notice of the drop in new-home sales. Bond prices rallied and yields fell following the news, a tacit acknowledgement of how critical the housing market is to the broader recovery. Indeed, if steeply rising rates cause the housing market to roll over, the economy is likely to go with it. READ MORE
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Walter Unger CCIM, CCSS, CCLS
I am a successful Commercial Investment Real Estate Broker in Arizona now for 15 years and I worked with banks and their commercial REO properties for 3 years. I am also a commercial and Landspecialist in Phoenix and a Landspecialist in Arizona.
WHETHER YOU LEASE OR OWN
NOW IS THE TIME FOR YOU TO EXPAND, UPGRADE OR INVEST.
In my opinion in Arizona we are at on the a rise of the cycle in Commercial Real Estate. so there is only one way and it’s called we are going up and now is the time for you to expand, upgrade or invest in Commercial Properties in Phoenix. The prices on deals I may get you will not be around forever.
IF YOU OR ANYBODY YOU KNOW IS IN TROUBLE WITH YOUR BUSINESS, AS MANY AMERICANS ARE IN THE MOMENT, AND ARE ABOUT TO LOSE YOUR COMMERCIAL PROPERTY, PLEASE CONTACT ME. IF YOUR BANK IS BEHAVING BADLY I MAY BE ABLE TO HELP YOU GET OUT OF SOME OR MAYBE A LOT OF FUTURE HEADACHES.
WAITING TO SELL YOUR LAND ? TIMES CHANGE / IT’S TIME
We barely could give land away the last few years, but times are changing. Even in those meager years, I sold more land across the state than most other brokers. Before the real estate crash I was a land specialist in Arizona with millions of dollars of transactions, but then I had to change and also sell other commercial investment properties, which was fun, but I am a Commercial Landspecialist in Arizonal, a Commercial Land Specialist in Phoenix and love to sell land, one acre to thousands of acres.
Since I was a Land Specialist in Arizona and a Land Speciaost in Phoenix many of my clients, Sellers and Buyers remember me and now they are calling me again, so this is the time to get back into land and none of my clients, including future clients, will miss out on getting their best deal.
Also, if you are up-side down on your land, like many Americans, and the lender is giving you a hard time, now is the time to put your land on the market. Lenders are making deals now with short sales. I have been working with banks for many years – I learned how to work with them.
If you have any questions about the 1 to 3 above, about Commercial Investment Properties in Phoenix or Commercial Investment Properties in Arizona, I will gladly sit down with you and share my expertise and my professional opinion in Commercial Properties in Phoenix or Commercial Properties in Arizona with you.Obviously I am also in this to make money, but it could be a win-win situation for all of us.
Please reply by e-mail email@example.com or call me 520-975-5207 (cell) 602-778-5110 (office direct).
Walter Unger CCIM
Kasten Long Commercial
2821 E. Camelback Road, Suite 600
Phoenix, AZ 85016
Office : 602-445-4141
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