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🪩 Titans' $2.1B Deal Finalized | 3D Printed Homes Could Change Inventory | March PCE Report

🪩 Titans' $2.1B Deal Finalized | 3D Printed Homes Could Change Inventory | March PCE Report

Michael DiLucchio
May 01, 2023

Morning! This is MF Lending - we’re the fool-proof way to serve up mortgage and real estate market knowledge without any of the guesswork. So you’ll look like the smartest agent in the room (and you are!)

Happy May - my favorite month of the year - and happy FED week!

If you want our predictions for the Wednesday FED meeting you can find them in our previous Friday edition.

Here’s what we’ve got for you today:

Building the Future: 3D Printed Home Changes the Game for Construction 🏗️
March PCE Report: The Lighthouse We Needed 💡
Titans’ $2.1B Stadium: A New Era in Public Funding 🏦

By the way, this article on “Date the Rate is a Nightmare” is the most clicked link in this newsletter, you should check it out if you are interested.

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Nuwave Rates Today 📉

Building the Future: 3D Printed Home Changes the Game for Construction 🏗️

New York-based Black Buffalo 3D won the Global Innovation Award for Building Material and Structural Component.

Their giant 3D printer made its debut at IBS 2022 by printing a 1,600 sqft house in 8 hours.

According to National Association of Home Builders (NAHB) - the printer coupled with MAPEI’s 3D ink now provide a compliant solution for structural and non-structural walls up to 40-ft high that are equivalent in structural integrity to standard concrete masonry blocks.

Could this be the innovative solution we need to “build out of” the inventory issue we face? Look at these amazing houses below.

Would you live in a 3D-printed house? Let me know in the comments.

March PCE Report: The Lighthouse We Needed💡

Personal Consumption Expenditures (PCE) for March was released on Friday. It showed favorable numbers, indicating inflation is coming down slowly.

Year-over-year PCE came down to 4.2% from 5.1%.

What does this mean for mortgage rates?

Reports like these are indicators that inflation is subsiding from the high levels we saw at the end of ‘22. You should be viewing this news as a lighthouse on the horizon.

We are by no means at the end of these high rates and high inflation, but this is an indication that the end is coming.

As I have continued to say, I think the CPI report in May will be extremely favorable and continue to show the FED that they have already done enough hiking.

After the inevitable 25bp hike on Wednesday, I believe we will start seeing rates top out with several FED pauses throughout the summer.

For clients that have been hesitant due to high payments and high rates, I would encourage them to get preapproved so that they understand their options as we move into summer.

I could easily see a run on the already slim inventory moving into late summer - especially if rates halt or even start to fall.

Titans’ $2.1B Stadium: A New Era in Public Funding 🏦

The Nashville Metro Council has approved funding for a new Titans stadium.

Total Cost - $2.1 Billion
Funding structure for the stadium includes
♦ $225 million in cash from the team's owner
♦ $500 million in revenue bonds issued by the Sports Authority
♦ $760 million funded by Metro debt repaid through the city’s hotel tax and sales tax from the stadium and the surrounding campus.
♦ $840 million from the Titans
The stadium will include a new practice facility for the Titans and other facilities for community use.
The project is expected to create over 7,000 jobs and generate over $4 billion in economic impact over the next 30 years.

What is a revenue bond?

Revenue bonds are a type of municipal bond issued by government agencies to finance large projects such as infrastructure, transportation, or public facilities.

These bonds are backed by the revenue generated from the project being financed, rather than the issuer's ability to repay the debt.

In the case of the stadium, revenue bonds would be paid back using: