Commenting on the meltdown of the SVB—which had grown to be the 16th largest in the U.S. and a favorite among tech startups, and the following shut down of New York-based Signature Bank, which regulators feared could threaten the stability of the entire financial system if left open—Armada ETF Advisors' Portfolio Manager Al Otero said that this apparent earthquake in the banking sector could translate into positive change for the housing market.
"The collapse of SVB late last week coupled with reports over the weekend that the Fed will undertake a major policy shift to guard against the risk of contagion, has put interest rate markets into a tailspin ...
In an aerial view, single family homes are shown in a residential neighborhood on May 10, 2022 in Miami, Florida. The housing market is likely to be indirectly impacted by the collapse of SVB last week.In a bid to slow down the economy and record high inflation, the Federal Reserve drastically increased interest rates last year, causing mortgage rates to dramatically surge.
As of October, the average 30-year fixed rate was around seven percent, having more than doubled from January 2022, when it was estimated at three percent.Faced with suddenly higher mortgage rates and higher repayments—worth hundreds of dollars more than they were only a few months before—many homebuyers were squeezed out of the market entirely, especially as home prices remained exceptionally high and inventory low.
Stop ignoring the blatant fraud in our financial markets. Report a real story on the real crimes against retail investors happening NOW! MMTLP $MMTLP
AND people can be reminded that it WAS Donald Trump that CREATED this mess in the first place with his policy change a few years ago.