Rowan says institutional investors prefer locking in 5% tax-free returns after a decade of low rates.
“They prefer 5% to 2%. It's no more we can make it really complicated, but when they're they've had a decade of very low ability to provide for retirement income, all of a sudden, can lock in 5% plus tax free for the next decade.”
Rowan states all commercial real estate purchased before 2022 is now worth less due to rates.
“Everything that was purchased prior to 2022 is today worth less. The change in cap rates, the change in interest rates has simply made the market worth less.”
Rowan declares we've had a soft landing after rates rose 400 basis points without breaking the economy.
“I think we've had a soft landing. When rates have gone up 400 basis points and the wheels haven't come off the bus, as they say, I think that's the definition of a soft landing.”
Rowan declares a soft landing achieved after 400 basis point rate increase without economic breakdown.
“we've had a soft landing. When rates have gone up 400 basis points and the wheels haven't come off the bus, as they say, I think that's the definition of a soft landing.”
Rowan questions Fed rate cuts given wide-open markets, record equity highs, and rising real estate.
“The notion that we would cut rates. Financial markets are wide open. Equities are at all time high. Financing is available. Real estate prices are going up”
Rowan criticizes Fed rate cuts as expensive insurance when financial markets are wide open and equities at all-time highs.
“What's expensive about it. The notion that we would cut rates. Financial markets are wide open. Equities are at all time high. Financing is available.”
Rowan observes ten-year rates rising while short rates fall, steepening the yield curve.
“And what we're seeing is a steepening of the yield curve. Rates that matter, the ten year, are higher even if short rates are lower.”