|
Dear BAG Clients and Friends,
Yesterday, the Federal Reserve announced a 50-basis point cut to the target range for the federal funds rate, marking the start of its first easing campaign in four years. We view this decision as positive for the housing sector and the homebuilding M&A environment. We believe this reduction, along with anticipated subsequent further rate decreases, will lower borrowing costs for builders and compress mortgage rates for buyers. We anticipate the 30-year mortgage rate will fall to 6.0% or below by the end of the year.
With the U.S. Presidential election on the horizon, in our view, both candidates have proposed favorable housing policies, indicating a positive outlook for the housing market in the coming years. We anticipate these macroeconomic tailwinds will continue to drive strong demand for homebuilder acquisitions. BAG has already closed five deals this year, with seven more builder sales under letters of intent and in due diligence. We are seeing broad interest from a diverse range of buyers, including several new entrants looking to invest in US builders and developers.
Tony Avila will be attending the "Focus on Excellence" event in Austin, TX, from October 28-29 to share insights and feedback with builders and market participants from across the country. If you would like to join us at the conference, click the link below. Here is a list of our upcoming events and conferences:
- 10/28 - 10/30: The Builder’s Daily: Focus on Excellence, Austin, TX
- 10/28 - 10/30: ULI: Fall Meeting, Las Vegas, NV
- 10/29: JBREC: The 2025 Housing Market Outlook, New York, NY
BAG and AREC will also be hosting dinners, lunches, and private meetings at each event. We welcome the opportunity to meet with you. If you're interested in a confidential conversation about raising capital or selling your company, please reach out.
| 
