In the world of multifamily property underwriting, one crucial factor that investors and lenders must consider is the impact of interest rates on underwriting. This consideration becomes especially important during periods of rising interest rates. In such times, it is essential to determine whether to use trended rents or untrended rents when assessing the property’s […]
As inflation has been increasing, the Feds start tightening the money supply but increasing interest rates. Effectively, this leads to less borrowing and should start reducing the demand for money. As the demand for money declines, inflation will start decreasing as the Feds predicted and as history has shown many, many times in the past. […]
The housing market benefited the most from lower interest rates, but once rates started tightening, housing started heading downward. If you assume a 20% down payment, the rise in mortgage rates and home prices since December 2021 amounts to a 52% increase in monthly payments on a new 30-year mortgage for the median existing home. […]
