Today’s News Synopsis:
In a breaking news story, the Federal Reserve raised interest rates today for the third time in six months and plans to raise them one more time. However, they may reconsider this decision with the drastic decrease and slowdown in consumer-price inflation. More wealthy home buyers are going after REOs rather than brand new properties due to tight inventory.
In The News:
NAHB – “More Than 800 Builders Discuss Housing Issues in Hill Visits” (6-14-2017)
“More than 800 builders from across the nation marched on Capitol Hill today for the annual National Association of Home Builders (NAHB) Legislative Conference to call on Congress to make housing and homeownership a national priority and to support policies that will keep the housing recovery moving forward.”
Realtor.com – “Award-Winning Author Explains Why the Affordable Housing Crisis Threatens Our Society” (6-14-2017)
“Sociologist Matthew Desmond wanted to know what happened to families when they were evicted from their homes—and what sorts of repercussions were felt in their communities. So he set out to find the answers.”
Bloomberg – “Fed Raises Rates, Maintains Forecast for One More Hike” (6-14-2017)
“Federal Reserve officials forged ahead with an interest-rate increase and additional plans to tighten monetary policy despite growing concerns over weak inflation.”
“Companies hoping to secure more warehouse and distribution space are going to run into steeper prices, with fewer options to pick from, in the future, industry website JOC.com reported Tuesday.”
Freddie Mac – “Freddie Mac Prices First Offering of Tax-Exempt ML Certificates” (6-14-2017)
“Freddie Mac (OTCQB: FMCC) today expanded its support for affordable housing with a new series of credit risk transfer securities backed by Tax-Exempt Loans (TELs) made by state or local housing agencies and secured by affordable rental housing.”
Realtor.com – “Bank-Owned Homes Get a Fresh Look From Wealthy Buyers” (6-14-2017)
“Affluent home buyers, desperate for inventory in the hottest markets, are giving a fresh look to bank-owned homes. Savvy buyers could be rewarded with a discounted luxury home in a posh neighborhood. But they also could be stepping into a money pit with legal snarls.”
Bloomberg – “Slowing U.S. Consumer Inflation May Sow Fed Doubt on Prices” (6-14-2017)
“A greater-than-expected deceleration in U.S. consumer-price inflation in May could give some pause to Federal Reserve officials as they consider further interest-rate increases, Labor Department figures showed Wednesday.”
CNBC – “Why boutique hotels are so big in not-so-big cities” (6-14-2017)
“Jane and Greg Hills were visiting New York City when they grabbed a drink in the lobby bar of the Dream Downtown, a boutique hotel in Chelsea.”
Aaron Norris will be presenting his latest talk Technology Trends and Effects on Real Estate with NorcalREIA TONIGHT.
Bruce Norris will be speaking at the NSDREI 13th Anniversary Dinner Party on Tuesday, June 20.
Bruce Norris will be presenting his latest talk 10 Life-Changing Days of a Real Estate Investor with the South Orange County Real Estate
Club on Thursday, June 22.
Debt on commercial and multifamily properties increased in the first quarter of 2016 by 1.2% to $35.3 billion. New home purchase applications, on the other hand, decreased 6% according to the Mortgage Bankers Association. Wells Fargo released a new survey showing homeownership was still priority for the majority of Americans.
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