Bill Ackman: The Real Estate Market is "Falling Off a Cliff"

Bill Ackman: The Real Estate Market is "Falling Off a Cliff"

1,744 View

Click this link to get up to 15 free stocks from moomoo U.S when you make a qualified deposit! Terms & Conditions Apply:

Billionaire investor Bill Ackman just issued a dire warning message on the future of the real estate market and economy. Ackman is the Founder and CEO of Pershing Square, one of the most well respected firms on Wall Street. That is why it got my attention hearing Ackman warn about how it is highly likely that there is a tsunami of real estate bankruptcies on the horizon that is just about to make landfall. These bankruptcies have the potential to account for hundreds of billions of dollars and send massive ripples through the economy. Let’s hear what Ackman had to say.

Unlike most residential mortgages, interest rates on commercial real estate loans do not remain the same for the entire length of the loan. Here in the United States, when an individual or family purchases a house, the vast majority of the time that purchase is financed with the standard 30 year, fixed rate mortgage. With a fixed rate mortgage, the interest rate on the loan is “fixed”, aka doesn’t change, for the entire time that loan is outstanding. This concept is incredibly important to understand and helps put Ackman's warning into context. Since the interest rate never changes, the home owner knows that their mortgage payment is going to remain exactly the same for as long as they own the house. Or, of course, until they pay off the loan in full. Homeowners with fixed rate mortgages don’t have to worry about their mortgage payment doubling or even tripling due to interest rates spiking.

This is a big reason why foreclosures on mortgages have been so rare. In 2021, only one-tenth of one percent of homes in the US were in foreclosure. Even during the worst period of the great recession, that number was still only 2%. Just a fraction of the default rate of other loans such as credit cards and auto loans. US homeowners are truly fortunate that fixed rate mortgages exist.

Moomoo is a financial information and trading app offered by Moomoo Technologies Inc. Securities are offered through Moomoo Financial Inc., Member FINRA/SIPC. The creator is a paid influencer and is not affiliated with Moomoo Financial Inc. (MFI), Moomoo Technologies Inc. (MTI) or any other affiliate of them. The experiences of the influencer may not be representative of the experiences of other moomoo users. Any comments or opinions provided by the influencer are their own and not necessarily the views of MFI, MTI or moomoo. Moomoo and its affiliates do not endorse any trading strategies that may be discussed or promoted herein and are not responsible for any services provided by the influencer. This advertisement is for informational and educational purposes only and is not investment advice or a recommendation to engage in any investment or financial strategy. Investing involves risk and the potential to lose principal. Investment and financial decisions should always be made based on your specific financial needs, objectives, goals, time horizon and risk tolerance. Any images shown are strictly for illustrative purposes. Past performance does not guarantee future results.

Read More
By: Investor Center
Title: Bill Ackman: The Real Estate Market is "Falling Off a Cliff"
Sourced From: www.youtube.com/watch?v=vA5qh7-8TZY



_______________