US faces real estate risks, Fed report warns
Banks face funding stresses while uncertainty over policy is a risk, Federal Reserve says
The US economy is facing several risks associated with real estate, the Federal Reserve said in its bi-annual financial stability report, published on April 19.
The Fed said residential property prices were historically high and commercial real estate prices were historically low. Some banks, it warned, were exposed to large loans tied to commercial real estate, which are under stress and could come under more.
Commercial real estate has been altered by shifts caused by the Covid-19 pandemic
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