What I’m Reading
Roadblock: Demand for warehouses in the Inland Empire is massive, pushing new development further east. However, residents are not happy with having new industrial developments nearby and are pushing back hard, resulting in substantial delays or the outright withdrawal of applications. Globe Street This is great news for existing owners as rents will increase when less product gets built. Not so great news for tenants.
Hitting the Brakes: The US economy grew at its fastest pace since 1984 last year. However, there are some signs that the momentum is not carrying over into 2022, casting doubt on the Fed’s aggressive rate hike schedule. CNBC
This Will End in Tears: Metaverse mortgages are being used to buy virtual “real estate” with transactions sometimes in the millions of dollars. Business Insider Suddenly I find myself looking forward to another subprime crisis.
Sidelined: Distressed debt investors are still sitting on $95 billion of capital with no place to put it (aside from perhaps the bonds of giant Chinese developers). Bloomberg
Final Push: Borrowers are rushing to get the last of low mortgage rates, with refinance volume spiking 18% week to week. CNBC As refi volume dries up, mortgage loan originators are about to embark on a massive cash out marketing blitz to try and push volumes. Expect products like this HELOC backed credit card to become more common.
Chart of the Day
Bullish AF for home remodeling, especially when you consider that owners will be less likely to move up as rates rise.
Source: JBREC
WTF
Hanging Out: A naked man was arrested after he was spotted knocking on random doors in a residential neighborhood because Florida. ABC 20
Big Night: A man who was arrested after police found him slumped over the wheel of his truck told officers he had consumed 35 bottles of Corona beers because Florida. Villages News
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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