There has been tremendous pressure for some easing by the Fed. The Trump Administration has been very vocal about getting some relief on rates. The economy is not the roaring lion it was several years ago when the Fed made some aggressive moves to tighten the money supply.
I have not been as concerned about Home Mortgages as I have been about the availability of financing for big projects that help boost the local economy. Sure a little softening for my typical home buyers will be greeted with a grin, but more importantly is opening up capital for larger commercial and residential projects that seemed otherwise be stalled waiting for funding.
Vancouver's Downtown and Waterfront have several very large projects that have made it through all the preliminary approvals for design and zoning. These projects will be valued in excess of $500 million which is a direct injection into the local construction trades and tax coffers for the city.
The Fed meets next month and there has been some suggestion that a rate drop is likely coming. Should we see some easing we could see mortgage rates dip a little as well. Rates tend to be running in the mid 6's for quality borrowers and a dip to the lower 6s will have a positive impact on the local real estate market.
Sales volume has been light over the last 24 months and we are seeing a stead increase in inventory as well. Buyers are actually in strong positions right now aside from qualifying. We a reduction in rates the number of qualified buyers will increase and could very well jump start the sluggish sales numbers.
Here's to a solid 4th quarter!
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