According to a report issued by Trepp last week, the payoff rate of maturing commercial mortgage–backed securities loans continues to improve. An incredible 74 percent of CMBS loans reaching their balloon maturity last month were repaid in full, up 15 percent month over month.
In an Urban Land editorial, former secretaries of the U.S. Department of Housing and Urban Development Henry Cisneros and Mel Martinez say that America’s housing finance system is fundamentally broken and in desperate need of repair.
The Aon Risk Survey looks at the top current and future risks its clients face. The top risk continues to be an economic slowdown and a slow recovery, while cash flow and liquidity ranked at the low end for both the present and future.
Growth in new construction in the United States remains muted, as both business generally and real estate specifically wait for growth in the economy. The Architecture Billings Index—a proxy for future construction—declined 1.3 points to 51.6 in June while global sales of cranes have declined 16 percent from 2008’s level, with 65 percent of new sales in China.
The combination of Japanese monetary policies, government spending policy, and structural reforms being carried out under Prime Minister Shinzo Abe has sent the Japanese stock market up by about 60 percent and weakened the national currency to around ¥100 against the dollar, about a 20 percent decline. However, hurdles remain on the path to success.
While many of us were trying to “out-parse” each other as we dissected the public ruminations of the Federal Reserve on the path of QE2, the capital markets seemed to have voted with their feet. As of mid-July, the national average 30-year fixed rate home mortgage was priced at 4.51 percent, its highest level since July 2011.
Wall Street seems to be experiencing something between a “summer swoon” and a bad reaction to a visit to the house of mirrors, as it continues to parse, re-parse, and parse once again the all too numerous statements by members of the Federal Reserve’s hierarchy.
Jeff T. Blau, CEO of Related Companies, talks about managing a firm through transformative projects such as Hudson Yards and Time Warner Center in New York City—and about the challenges of working globally.
Recent volatility in the debt capital markets, caused primarily by the mere suggestion that the Federal Reserve might scale back its bond-buying program later this year, is causing any number of transactions to be put on hold. With rates in flux there seems to be “paralysis of analysis” taking place.
Among the best bets highlighted in the 2013 edition of Emerging Trends in Real Estate was the advice to lock in then-current rates rather than stay with floating-rate debt. Here we are roughly seven months later and yet another prediction is coming true, as we see that ten-year U.S. Treasury bonds are at a 22-month high and 30-year bonds are at their highest level since September 11.