Big Landlords Are Losing Big Right Now
There’s a lot of hopium about interest rates coming down, but they’re stubbornly high and will likely remain that way in the next year.
The “date the rate, marry the house” slogan was just that —a slogan — and had no basis in reality (i.e. prices coming down or rates going up). The buyers who relied upon this slogan, are now paying more than they had hoped, and many of them, are now underwater.
On top of the rising inflation due to tariffs (Goldman Sachs says 70% of tariffs are passed onto consumers) finally showing up in the data this morning in the core CPI report, and the “Big Beautiful Bill” $5T of spending added to the deficit the prior week, we are now seeing mortgage interest rates stay elevated and even expected to rise.
Due to this, recently, we’ve been seeing more and more large investors lose everything, and start giving their properties back to the bank via foreclosure.
