Order Volume

[Zoe]

It is hurting local real estate agents and you can see why. Sales volume is way down.

 

[Zoe]

Ask @DWiley. I don't study Nashville anymore. I would bet they still have a shortage in single family housing supply. Memphis MSA definitely does. (metropolitan statistical area).

Agents are begging for listings to list. But when they find a buyer, they are happy the buyer and seller don't mind the higher interest rate.

 

[Mark K]

I remember people loving certificate of deposit rates on like 5 year certificate of deposit at like 10%. Most of you are too young to remember that.

I remember a 15% 5 yr. CD I bought at a local S&L. Rates dropped quickly and they kept trying to get me to cash it in for a 10%. The wouldn't pay me a premium so I kept it until the end.

People don't mind paying the higher interest rates for a house if they are having a hard time finding a house to buy.

That's assuming, of course, that they can afford the payment.

 

[Zoe]

I remember a 15% 5 yr. CD I bought at a local S&L. Rates dropped quickly and they kept trying to get me to cash it in for a 10%. The wouldn't pay me a premium so I kept it until the end.



That's assuming, of course, that they can afford the payment.

Remember on a rotation panel like VA has they make sure you can afford it. VA can get 100% financing.

You can on conventional and FHA in some cases. Banks give 100% on internal loans many times with no problem. The Bank holds the loan in house on a very short term interest rate lock.

The internal loan that the bank holds will have a higher interest rate than the loans they sell. I don't know amount of hike in interest rate. I can guess 2%. I don't know that. Rate and term of loan and rate lock make a difference.

 

[Zoe]

Commercial loans are same way on real property. Rates on commercial loans that banks hold will be higher than single family housing loan rates.

 

[Zoe]

Remember Trump is in doo doo for getting favorable borrowing rates by over inflating HIS real property value.

Interesting.

 

[Overimprovement]

Commercial loans are same way on real property. Rates on commercial loans that banks hold will be higher than single family housing loan rates.

Not always. Many A-paper loans traditionally are very close to or even lower than, standard 30 year res. rates. That is before factoring in relationships revenue (deposits, investments, etc) which can lower the actual loan rates a bit more. Even today, I am seeing new class A multi-family projects with rates in the mid to upper 6's, though admittedly rising. Banks have to compete with Cap markets and insurance companies and even fannie to even get the best loans. Many are non-recourse as well. Most home mortgage loans that banks keep are higher rate due to higher risk or other non-confirming reasons.

 

[glenn walker]

Low Cost states will be fine but high cost areas are a different story. Our Avg loan is $500K plus and many $700K plus

 

[Surf Cat]

Residential market is still so much better than commercial market.
Wife wants to sell our commercial property but I said value has dropped so much and difficult for buyers to get commerical loan. Bad time to sell.

Dude....just open up a brewery. Get a few IPA's on tap, some hotties to serve the beer and take credit cards, some picnic tables, 60" led tv's for sports, a couple of used pinball machines and you're rolling.

Speaking of rolling, you cut a deal with some food trucks to get a % of their cut to let them park and serve outside the warehouse doors.

 

[Elliott]