A recession warning tracked by Wall Street is growing louder, as another measure of the widely watched “yield curve” signals that the United States is headed toward an economic slump. The yield curve is a way of comparing interest rates, also known as yields, on different maturities of government bonds, from a few months to […]
On March 15, the Federal Reserve announced their decision to raise the short-term interest rate to 0.75% – 1%. The Federal Reserve Report on Monetary Policy reports that rates are expected to continue rising to accommodate changes in labor market conditions, levels of inflation, and financial and international developments. The predicted trajectory for future rates […]
Recently, the positive change in commercial cap rates could be attributed to the recovery of credit markets. Low cap rates and weak fundamentals have lead many to question the Fed’s low interest rates. These low rates may be excessively raising commercial prices. In a quote from FRBSF, “It’s true that cap rates are at historic […]
Thinking of selling your home? December marked the highest jump in prices since May 2006, 8.3% compared with December 2011. The jump can be attributed to a low inventory of homes and rising demand for housing nationwide. The effects of steady increases in home prices are overwhelmingly positive for the US economy. Owners are enticed […]
