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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (28323)	3/18/2005 5:08:35 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 306849

as interest rates have declined since 1986, the cut-off rates have been brought down by 4% to 14%, 19% and 28%. This should be producing a completed project return of 12.4% this suggests that an increase in interest rates from here could cause cut-off rates to increase, resulting in fewer projects being greenlighted. that, of course, would only exacerbate the situation. as for 1.6% slippage, it would be interesting to know how that has been affected over time by technological advances.