The Monthly Mag - April 2022

Hello!

Happy Spring! I hope this finds you well.

We've been talking about it for a long time, and now it has finally happened: interest rates are on the rise. We’ve already seen rate spikes slow down the volume of refinances by 50%, YoY.

Even though the Fed doesn't have direct control over mortgage rates, how they manipulate the federal funds rate and what they do with other policies has a knock-on effect. Thus far, current economic conditions and actions by the Fed have driven mortgage rates up. Many believe that this is a trend that will continue.

So, what does that mean for the market? Typically, rising mortgage rates cool buyer demand. Yet, because they have been historically low for such an extended period, overall rates are still lower than they were in the 2000s and significantly lower than in the 1980s and 1990s.

From everything we've seen on the ground, buyers haven't been discouraged and demand remains high—and this is particularly true in the high-end luxury market given the near daily loss in value of cash. If rates continue to rise, we'll likely reach a point where demand tapers off. Until we reach that point, however, I see a market that will continue to be active as buyers look to a post-pandemic future and investors look to use real estate as a hedge against inflation.

Below, I have included our Q1 2022 reports.

As always, should you need any help buying, selling or renting in New York or elsewhere, it would be my pleasure to serve you.

Regards,

Maggie