Stagflation and economic stimulus. If you have been around the block a few times, you might remember those terms from the 1970s and ’80s. Guess what? They’re back. Some financial analysts are now predicting that we can expect the perfect storm of slow or negative economic growth combined with rising costs. Of course costs have been rising for some time, but now we are talking about increases that are actually acknowledged by the government.
Let’s hope it doesn’t lead to another relic of the early 1980s: sky-high interest rates. Meanwhile, keep your eyes on Washington just in case the politicians pass an economic stimulus measure that has something in it for housing.
More federal bankruptcy judges are calling into question the business practices of Countrywide Financial Corp., as Bank of America Corp. prepares to buy the ailing mortgage lender. FULL ARTICLE
How badly has the
ripple effect from
billions of dollars in
failed home mortgages
roiled the
capital markets?
How long will tighter
loan terms and higher
loan pricing
spreads last, and
how will they affect
multifamily property
values? FULL ARTICLE
The CMBS market must stabilize before conduits can make competitive
spread quotes—and no one knows when that will happen. FULL ARTICLE
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Following its initial $100 million commitment last spring, Dutch pension fund PGGM will invest an additional $100 million in Behringer Harvard’s expanding portfolio of Class A apartment communities. FULL ARTICLE
The Mortgage Bankers Association lauded the Department of Housing and Urban Development’s decision to rescind a notice that would have increased the mortgage insurance premiums of a number of multifamily programs.
FULL ARTICLE
Freddie Mac's financial strength rating may be cut by Moody's over concerns that the government-sponsored mortgage finance company will experience higher-than-expected credit losses. FULL ARTICLE
Hotelier Glade M. Knight has launched an effort to raise up to $2 billion in equity for a new real estate investment trust (REIT) that would invest in the apartment and hotel sectors.
FULL ARTICLE
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