The Commercial Real Estate Alpha Site

Its been a while since we’ve had a rate cut sighting, but alas we are here now!

Powell starts a party … It’s a good day to be a licensed photo of a stockbroker who’s showcasing unbridled joy on the floor. On Thursday, major indexes closed at record highs following the Fed’s decision to cut interest rates by 50bps earlier in the week. The tech-heavy Nasdaq was up 2.5% by trading day’s end. More context: This was the Fed’s first rate cut in four years. With rate cuts, it’s typical for risk assets like stocks to become more attractive. You can also expect a reduced cost of borrowing, with mortgages becoming more affordable. The 30-year mortgage rate fell to 6.09% following the Fed’s announcement, a trend that could inject new life into the housing market. Zooming out a bit, keep in mind this rate dipped below 3% in 2021, so there’s still a long way to go to get back to that level.  More merriment: US jobless claims—or, the number of Americans filing for unemployment—fell to their lowest level since May, per new data from the Labor Department. The 219K fell about 10,000 lower than the 230K analysts were expecting.

If you are considering selling or would like to know current valuation of your asset(s), let’s connect. www.dp-cre.com Sean Dreznin tritonCRE@gmail.com