Prepare for a 10% drop in commercial real-estate prices from their peak, and a wave of defaults, according to Moody's chief economist. , Mark Zandi highlighted concerns that commercial real estate could be the"next shoe to drop" in the economy after the banking sector was engulfed in turmoil following the collapse of Silicon Valley Bank.
"Demand for space is weak due to remote work and online retailing. Lots of multifamily units are being built. And credit to refinance and purchase properties is tough to get," he said.
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US mortgage rates could top 7% if debt default appears likely: ZandiUS home prices could plunge with mortgage rates topping 7% if a debt default even appears likely, Moody's chief economist says
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