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Originally Posted by EngiNerd
Yes a benefit to developers, because they know they can charge more because buyers will get qualified easier for a bigger loan when the interest rates (payment) are relatively low. If interest rates were up around the more historically average 6-7%, I couldn't believe that the housing prices would be anywhere near what they are right now, because affordability would be much much lower and developer wouldn't be able to sell.
I just got approved for a 3.5% interest on a new home, rates are still extremely low.
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BTW, it may be a very long time before we see interest rates of 6-7%.
Janet Yellen in this week's announcement that for now the FED is not raising rates but maybe in July referenced concerns over Brexit but also indicated the complexity of raising rates in a very low global rate environment. Also after raising the overnight bank rate earlier this year rates drifted higher and then did a U-turn, obviously.
These low rates also show how much capital is sloshing around out there which is good for commercial RE developers too.
Quote:
Originally Posted by comoneymaker
Riverfront green still sucks and will suck until they add 15 more floors.
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Would you settle for ten more floors? Stay tuned.
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