b'Theres No Place Like Home: Interest Rate Hikes and the Housing MarketShannon E. CookAfter June 15, 2022 "Tales from the Crypt(o):" Continued from Page 2612-877-5448|Shannon.Cook@lawmoss.com The Fed then increased the benchmark interest rate. In response, LawMoss.com/people-shannon-e-cook Common income and estate tax reduction strategies, including lifetime gifting and charitable giving, become more complicated and mortgage lenders started increasing interest rates for homepotentially less effective with cryptocurrency because its value is difficult to predict at any given time.Shannon practices in the areas of Real Estate Finance and Real Estate.mortgages. It is too soon to know how this will impact potential She focuses on representing lenders who originate and sell loans secured by multifamily projects to secondary market investors Fanniehomebuyers. Some buyers may feel motivated to purchase aTo comply with reporting and payment obligations or leverage potential tax benefits of cryptocurrency, investors and their Mae and Freddie Mac.home now, before interest rates increase again. Other buyers,fiduciaries should either obtain an appraisal or track and maintain detailed records of the date, basis, and value of each transaction including first-time buyers, may be forced out of the marketinvolving cryptocurrency. On June 15, 2022, the Federal Reserve raised its benchmarkwithout the purchasing power the lower interest rates previouslyConclusion interest rate by three-quarters of a percentage point in an attemptprovided. Available inventory of single-family homes is another to combat inflation. This was the steepest interest rate hike sincefactor to consider. The increased interest rates may quell demandCrypto investors need to take steps to protect and transition their crypto investments as they would any other financial assets. Whether 1994. Subsequently, on July 27, 2022, the Fed again raised itsfor homes, and potential sellers who locked in lower interest ratesyou have an extensive crypto portfolio or are considering investing in the cryptocurrency market for the first time, Moss & Barnetts benchmark interest rate by three-quarters of a percent, and it ismay now be unwilling to sell.estate planning attorneys can help you plan for your future by protecting both your traditional and digital assets.unlikely the last. Policymakers anticipate additional rate increasesWhat does the Increase in Interest Rates over the remainder of the year.Mean for Multifamily Apartments?The Feds benchmark interest rate does not directly set interestThere are numerous reasons consumers decide to rent an rates for single-family home mortgages, but it does have aapartment instead of purchasing a single-family home. Historically, trickle-down effect. Mortgage lenders will reassess and recalculatethose reasons included convenience and affordability. With an"You Got Served" Continued from Page 5their own interest rates, which will impact consumers andincrease in the interest rates, affordability likely will play a large home affordability.role in why consumers decide to rent instead of buy. With theSeeks privileged information. The subpoena may seek documents or testimony that is privileged and cannot be used in litigation. increase in interest rates, consumers will need to purchase homesAn attorney will help you decide if you need to assert a privilege. Note that you may still be required to produce or provide testimony With additional rate increases on the horizon, it is important torelated to non-privileged information. understand where the real estate market has been and where itof lower value to contend with the new rates. As such, it is likely is likely going.that consumers will hold off on purchasing single-family homesNo time to comply. Subpoenas include deadlines for compliance. But the Federal Rules of Civil Procedure require a subpoena to and continue to rent until the market becomes more favorableprovide a reasonable time for compliance. If the subpoena includes an impossible deadline, your attorney can ask the court to quash A Snapshot of the Single-Family Home Realto buyers. the subpoena or grant you additional time to comply.Estate Market ConclusionExceeds geographic limits. The Federal Rules of Civil Procedure imposes geographic limits on a subpoena commanding a person to Prior to June 15, 2022 It will take time for the full impact of the Feds historic interestappear for a deposition or trial. If you are commanded to appear somewhere outside of the geographic limits, your attorney can Anyone attempting to purchase a single-family home over therate hike and any subsequent rate increases to unfold. But itobject on your behalf.past year encountered a sellers market. In most instances, withinis likely the single-family market will cool slightly as consumersConclusion just days of listing a home, the seller would secure multipleengage in a cost-benefit analysis and opt to rent instead of showings and offers. Buyers attempted to stand out by waivingbuying a home. Moss & Barnetts Real Estate Finance group willIf you or your business is served with a subpoena, please immediately contact your Moss & Barnett attorney to discuss options and a inspections or agreeing to cover an appraisal gap. Over the coursecontinue to monitor these real estate market trends and advisepotential response. of the year, mortgage interest rates started to climb, but theclients accordingly. demand for single-family homes did not subside. 8 9'