16th Largest Bank Collapse - What it Means for Real Estate

16th Largest Bank Collapse - What it Means for Real Estate

Prominent tech and venture capital bank closes.....

Hello This is Rima Rafeh with The Rafeh Group at eXp Realty

The FED has been expected to raise rates again next week. They provided guidance in their previous meeting that would do so and the projections  for another half point (50bp).

https://www.federalreserve.gov/moneta...

However… that was before Silicon Valley Bank (SVB), the country’s 16th-largest bank, was seized by California state regulators on Friday, March 10 and placed into FDIC receivership in the largest banking collapse since 2008 

So now what?

I expect…. They will pause next week to assess any further risks to the banking system and move to eliminate any further spread. They are at their core bankers and while they are working to control inflation they don’t want to see the whole system collapse. 
https://www.bankrate.com/banking/fede...
 
You might be wondering What does this mean…

 I expect we will see a surge in the stock market (where many people have their down payments) and a drop in mortgage rates. This will be similar to 2021 conditions (strong stock market, lower interest rates) for a short period). 

What it means for buyers you might want to find a home in this short period and lock your rates since there is only a small window of opportunity before the FED go back to lifting rates again once they are satisfied the banking system is stable enough to weather additional increases and for sellers as you know in some cases we are seeing multiple offer situations so only imagine if rate drops again
 

I am more than happy to answer any questions or concerns you may have in regards to the Real estate market. You can reach me at 661-236-8899 or my website rimarafeh.com

The Rafeh Group
Rima Rafeh
DRE#01748539
eXp Realty
661. 236.8899
[email protected]