Contrary to the results of the Fannie Mae’s 2016 National Housing Survey, mortgage rates decreased over the past several months to near all-time lows. Though this development has come as a shock to many, experienced real estate advisors such as Jacob Frydman, a New York-based developer and investor, have foretold of just such an occurrence being an expected possibility in the continuously evolving market.
Jacob Frydman reminds us that the market is inherently cyclical, meaning that there will always be upturns, downturns, and periods in-between. He has been quick to point out that the most recent decline was somewhat reminiscent of the fiscal crisis New York experienced in the 1970’s, and that the sharp contrast between the city then and now is a perfect example of just how much the economy can transform in a matter of years. Frydman has frequently cautioned onlookers from overly fixating on current short-term trends and advises transferring focus to prospective opportunities which can be developed down the road. Frydman predicted interest rates and, consequently, real estate prices would begin rising during the 2010’s after remaining low for so long, but also prophesized that the market would stabilize again “towards the middle to the end of the decade”. If his predictions remain accurate, then by the 2020’s we should start seeing a return to the historically low rates that will provide brand new options in real estate.
Jacob Frydman – CEO & Chairman – United Realty Advisors, LP – LinkedIn: https://www.linkedin.com/in/jacobfrydman
Jacob Frydman – Huffington Post: http://www.huffingtonpost.com/author/jacob-frydman