Industries

Despite the improvement in sentiment, the homebuilder index remains below end-of-2021 levels, when mortgage rates were lower

Democratic senators including Banking Chair Sherrod Brown and Elizabeth Warren want to restrict tax breaks for large corporate investors that buy local homes and often drive up costs.

With new construction activity at the highest level in more than a year, the Federal Reserve Bank of Atlanta's GDPNow tracker is projecting residential investment added 0.1% to growth in gross domestic product in the second quarter.

Alimited supply of existing homes continued to spark interest in new construction, the National Association of Home Builders found.

Economic analysis from the real estate advisory CBRE finds that community banks are particularly imperiled by their exposure to commercial real estate loans. Others see looming risks in indirect lending.

But scarce housing inventory has helped to bring home equity values back upward, offsetting some of the losses of late 2022.

But when compared past periods of upheaval, those rates remain relatively low, the Mortgage Bankers Association report showed.

The Federal Deposit Insurance Corp. said in its quarterly banking profile that the banking industry remains resilient despite a challenging economic backdrop, but exposure to commercial real estate losses and interest rate risks could make continued stability difficult.

However, much of the damage could already be priced into the stocks after this latest selloff, analysts said.

The beleaguered bank said it is selling 74 loans totaling about $2.6 billion to a subsidiary of Kennedy-Wilson Holdings. The move is part of a plan to pursue strategic asset sales, trim expenses and shore up its balance sheet.