Sales volumes of residential and commercial real estate are both tumbling since the Federal Reserve began jacking up interest rates, according to Deutsche Bank.
U.S. real estate has undergone a dramatic slowdown in transaction activity in the months since the Federal Reserve began jacking up interest rates.
Similarly,... U.S. real estate has undergone a dramatic slowdown in transaction activity in the months since the Federal Reserve began jacking up interest rates. Similarly, the chart shows commercial real estate transactions dropping off a cliff after they rose 40% higher than their prior peak in 2019, according to a new client note from Deutsche Bank research.
They also noted that mortgage rates of about 6.5% in both sectors will allow the Fed “to unwind some exuberance” in the housing market, where prices climbed about 40% since March 2020 and roughly 30% in commercial real estate.The Fed began rapidly increasing its policy interest rate from near-zero in March to help bring inflation that peaked above a 9% annual rate this summer closer to its 2% target. Its federal funds rate was increased to a 4.25% to 4.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
USD/IDR turns volatile after weak Indonesian Retail Sales, Fed Powell in focusThe USD/IDR pair is displaying volatile moves in the Asian session after the release of the annual Indonesian Retail Sales (Nov) data. The economic da
Read more »
Fed's Bostic: Fair to say that the Fed is willing to overshootAtlanta Federal Reserve bank president Raphael Bostic said on Monday that it is ''fair to say that the Fed is willing to overshoot.'' Key notes A like
Read more »
China passenger vehicle sales rise in Dec, Tesla sales slump 41% - dataChina's passenger car sales rose 2.4% in December as consumers rushed to make use of a subsidy for electric vehicles (EV) before they expired last month, with sales likely to sharply weaken in January, an auto industry body said on Tuesday.
Read more »
The Fed is not a 'climate-policy maker,' Powell saysThe Federal Reserve is not a 'climate policymaker,' said Fed Chairman Jerome Powell, on Tuesday.
Read more »
Watchdog complaint alleges Rep. George Santos committed campaign finance violationsA federal watchdog on Monday urged the Federal Election Commission to investigate Rep. George Santos, R-N.Y., alleging he violated federal campaign finance laws.
Read more »
Fed's Daly sees interest rates rising above 5%San Francisco Fed President Mary Daly sees the central bank's benchmark interest rate rising above 5%
Read more »