Before I get going, I’d like to share a few links to mortgage-related stories this week. I found them to be significant, and they may end up triggering thoughts on the state of the market this weekend.
This has implications for your local community banks, if they were like at least half of them around the country, regular lenders to local developers and real estate investors. Especially hard hit are the loans to hotel owners, nearing 20% delinquency as a national aveage. If you’re like me, you’ve wondered as well how many medium-to-upscale Courtyard by Marriot, Holiday Inn Express, or Best Westerns with free parking, free breakfast and free internet the country could support.
Second, the logjam on refinancing seems to be breaking up, which has implications for the mREITs with more fixed-rate exposure. Those implications are not that the party is over, but rather that the fast-pay segment of the S Curves I warned about is now happening.