Mortgage trading narrowed this spring at a time when rates were rising. Lo-and-behold, rates are headed south once again. But inflation fears are accelerating. What’s an MBS owner to do?
Industry experts speaking during a recent Kroll forum on commercial real estate recovery attributed the recent rise in interest rates to economic momentum versus inflation.
“Issue debt while you can.” That seems to be the mantra of nonbank mortgage lenders and even real estate mortgage investment trusts. The latest sellers: UWM and PennyMac.
What a difference a year can make. Last spring, the REIT was getting margin-called and selling MBS. Today, it’s buying huge mortgage banking franchises.
Legislation to impose taxes on mezzanine debt and preferred equity investments, payable by building owners, is still a possibility in New York state. Trouble for the multifamily sector?