Source: Richmond Times Dispatch —
Ray LaMontagne most likely wasn’t referring to real estate in his song titled “Trouble” featured in an iconic Travelers Insurance commercial where a dog frets about a good place to hide his bone with the lyrics “worry just won’t leave my mind alone.”
But just like that dog worried about his bone, investors today have plenty to keep them awake, particularly developers of real estate.
Inflation fears layered with the Federal Reserve plans to pull back their support from the bond market point toward higher interest rates down the road. The Federal Reserve currently purchases over $120 billion of treasury and mortgage-backed securities on a monthly basis. In late August, Federal Reserve Chairman Jerome Powell indicated that support is likely going to be tapered back starting as early as November of this year. The market is starting to get a little worried which has pushed rates up some .25%.