Weekly Report – September 6th, 2023

Graph 2023.09.06

Highlight of the Week

Economic Uncertainty Persists

  • As Federal Reserve officials continue to share their individual perspectives on the future of monetary policy, most Fed members remain cautious and continue to maintain a hawkish stance toward inflation given the current economic uncertainty.
  • Meanwhile, economists at Goldman Sachs have lowered the probability of a US recession in the next year from 20% to 15% as they believe the economy has strengthened and will continue to get stronger.
  • Investors and lenders will be watching closely as the FDIC begins to market a $33 billion CRE loan portfolio consisting primarily of multifamily loans from Signature Bank.
  • It is expected that the resulting transaction will attract a high level of interest from different parties across the CRE landscape for insights on the valuation of the portfolio. We expect to see an increase in CRE loan sales heading into 2024 as lenders accept that interest rates will be staying higher for longer.

Rate Curves

Graph 2023.09.06
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