THE LOCATION STRATEGY TOP 10

BACK TO OUR REGULAR NEWS THIS WEEK - ALTHOUGH WE STILL HAVE COVERAGE OF BANKING ISSUES.

FANNIE MAE IS ONLY FORECASTING A 1.1% INCREASE IN SINGLE FAMILY HOME SALES NEXT YEAR; THE REASON IS THAT ITS MORTGAGE RATE FORECASTS HAS SHIFTED SIGNIFICANTLY IN THE LAST MONTH. FANNIE MAE NOW EXPECTES 30-YEAR FIXED RATE MORTGAGES TO AVERAGE 6.5% (LAST MONTH IT PREDICTED 5.9%). IN 2024, FANNIE MAE EXPECTS RATES TO AVERAGE 5.9% (LAST MONTH IT PREDICTED 5.2%). THESE RATES ARE LOW ENOUGH TO SUPPORT SALES, BUT NOT SO LOW TO REALLY DRIVE VOLUME.

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FOMC INCREASED INFLATION FORECASTS FOR 2023 AND 2024 - SURELY THIS MUST BE THE MAIN FACTOR IN FANNIE MAE RAISING ITS RATES.

This year's US bank failures are among the largest in recent history; second only to 2008's failures. And that is just with 3 banks.

SMALL BANKS EXPERIENCED THE LARGEST WEEKLY OUTFLOW OF DEPOSITS EVER RECORDED - THIS IS WERE ABOUT 70% CRE AND 60% SF MORTGAGE LOANS ARE LOCATED. BIDEN PREDICTS THERE ARE NO MAJOR PROBLEMS FACING BANKS. IN OTHER NEWS, THE PRESIDENT'S PREDICTED WINNER OF THE MARCH MADNESS TOURNAMENT LOST IN THE FIRST ROUND>

WHY CARE ABOUT SMALL COMMUNITY AND REGIONAL BANKS? BECAUSE SO MUCH REAL ESTATE, ADC AND MORTGAGE LENDING COMES FROM THERE.

GOOD INDUSTRIAL NEWS FOR THE I-35 CORRIDOR

“This Mexico-to-Midwest train is a proof of concept and a sign of things to come if a combined Canadian Pacific Kansas City (CPKC) network is approved by the Surface Transportation Board (STB),” CP President and CEO Keith Creel said. “With STB approval, CPKC will work with our customers and invest in new infrastructure and train services to unlock the full potential of the combined network to offer unmatched supply chain alternatives and benefits compared to other rail options through congested ports and a real alternative to highway-clogging trucks. I would envision creating a new Mexico Midwest Express interline service that could deliver all of these benefits.”

THE TOP 20 METRO AREAS HAVE SEEN YOY RENT GAINS DECLINE INTO THE SINGLE DIGITS. THESE ARE LIKELY TO SHOW UP AS ACTUAL DECLINES BEGINING IN MID-YEAR.

Existing Home inventories remain tight - some 98% of mortgages are below current rates. This is likely going to have a lock-in effect in the existing market which should promote new home sales.

It’s taking longer to build homes

THE LABOR FORCE IS SHRINKING IN INDUSTRIALIZED COUNTRIES - THIS IS A FACTOR IN LABOR SHORTAGES IN THE US.

Scott Davis

LOCATION STRATEGY, LLC

1302 Waugh Drive #178

Houston, Texas 77019

832.304.DIRT (3478)

www.locationstrategyllc.com