As I made clear in my post, I was talking about commercial real estate owners. Commercial real estate funds/portfolios/REITs hold assets that are perpetually in need of refinancing.I was going to counter this but then about two posts later, there was this
Which is where I'm at. Not that I would consider moving because I love where I live, my home, everything but why would fixed rate folks be forced to refinance unless they are getting now at 6+ and this comes back around in a few years.It isn't likely as people don't want to give up their mortgage that starts with a 2 or 3
As quoted, there are $270 billion in mortgage loans that are in need of refinancing this year alone, highest in history. If those assets are held onto and their loans refinanced, there will be a big hit to cash flow. If the asset is sold, then a big hit to valuation. Only owners with strong balance sheets will be able to ride through to the other side.
Residential real estate owners do not face the same refinancing risk unless they were on some sort of variable rate mortgage. Or forced to sell, which is still a big risk if unemployment rises dramatically.