Warehouses Got a Little Hotter this Year

Good morning everyone!

Over the past year, the real estate market has been a tough one to wrap our heads around. The housing market saw the largest boom since before 2008 despite the uncertainty of the pandemic and millions of people losing their jobs. On the commercial side, new developments came to a screeching halt because nobody was leaving their house to visit them and office space was absolutely crushed as companies sent their employees to work from home. However, one sector of the commercial market thrived… Warehouses. And the reason is ecommerce. Thousands of companies had to make a split decision during the lockdowns to take their business online or go under. This decision led to a 21% increase in demand for warehouses across the country. Counterintuitively, stores that moved to warehouses required 3x the sqft their brick and mortar store did because when people shop online, they expect more options. And more options meant more money in the pockets of anyone in the warehouse industry.

Above is MBS pricing for the past month. For the past few days, they have been battling the red Fibonacci level as you can see in the highlighted area. (If you don’t know what a Fibonacci Level is, check out this article – What is a Fibonacci Level??) First thing this morning, they jumped above it but like yesterday, they immediately fell and are not sitting directly under it. Wile intraday trading does matter, the real floors and ceilings are based on closing prices. Us and the rest of the mortgage world are praying that we are able to close above it today and continue climbing. We are carefully floating today but will lock if we see a bounce off of the ceiling.

Have an awesome day!

Get your custom rate quote in 30 seconds

See your customized rate and fee options without sharing any personal information

See Purchase Rates See Refi Rates

Additional Articles

Still Need Help?