- Some $1.5 trillion in mortgages will come due in the next two years – paving the way for a financial crisis as higher interest rates push down property values
- As this event looms, big banks such as Wells Fargo are cutting their losses by preparing to offload debts at a discount even when borrowers are up to date
- The phenomenon has been further compounded by office vacancies, as a sizable amount of Americans continue to work from home even after the pandemic
Some $1.5 trillion in real-estate mortgages will come due in the next two years – paving the way for a potential financial crisis as higher interest rates push down property values.
As this event looms, big banks such as Wells Fargo are already cutting their losses by preparing to offload debts at a discount even when borrowers are up to date – a sign of their lack of faith in the once stalwart commercial real estate market.
Meanwhile, higher interest rates meant to hamper inflation continues to push down property values by deterring buyers – a phenomenon compounded by continued office vacancies.
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Source: www.dailymail.co.uk
ENB
Sandstone Group
