Category Archives: The Economy

Commercial Capitalization Rates and 10-Year Treasuries

Had the opportunity to participate in a panel on industrial real estate this month at a national commercial conference. I was taken aback by a broker and fellow panel member that truly believed that rising interest rates would not result in a corresponding increase in capitalization rates. The panelist’s denial of a likely increase in …Read more

Another Top-10 List — Metropolitan Statistical Areas (and Division) Job Growth 12 Month Ending October 2016

Jobs are everything. Period. Once again I invoke the TINSTAANREM clause — There Is No Such Thing As A National Real Estate Market. Each real estate market is different. Ditto local economies. The latest job growth estimates for Metropolitan Statistical Areas (MSAs) and Divisions are now available from the U.S. Bureau of Labor Statistics through …Read more

Another Top-10 List — Best Job Growth States October 2016

Jobs are everything. Period. Each state performs differently than others across time. Once again I invoke the TINSTAANREM clause — There Is No Such Thing As A National Real Estate Market. Each real estate market is different. Ditto the economy. The latest job growth estimates for state employment has just been released by the U.S. …Read more

30-Year Residential Mortgage Rates Jump to 3.94 Percent Vs 3.57 Percent a Week Ago

One week following the U.S. Presidential election, 30-year conventional fixed-rate residential loans rocketed up 37 basis points from 3.57 percent to 3.94 percent as investors commenced dumping their low-yielding Treasuries in anticipation of rising rates due to a stronger economy. Mortgage rate data are from Freddie Mac’s weekly Primary Mortgage Market Survey http://www.freddiemac.com/pmms/archive.html?year=2016. The 37 …Read more

Another Top-10 List — Best States Tax Environments

Taxes or lack thereof can be a repellent or a magnate to businesses relocating or expanding across the country. As an economist, for example, I would have an issue residing where there was a state income tax. Taxes are not the only reason why firms stay, move or expand elsewhere. There are a plethora of …Read more