{"id":439214,"date":"2026-10-02T01:00:06","date_gmt":"2026-10-01T18:00:06","guid":{"rendered":"https:\/\/www.swingfish.trade\/blog\/market-news\/feds-schmid-rising-long-term-rates-are-starting-to-strain-housing-and-commercial-lending-439214\/"},"modified":"2026-10-02T01:00:06","modified_gmt":"2026-10-01T18:00:06","slug":"feds-schmid-rising-long-term-rates-are-starting-to-strain-housing-and-commercial-lending","status":"publish","type":"post","link":"https:\/\/www.swingfish.trade\/blog\/market-news\/feds-schmid-rising-long-term-rates-are-starting-to-strain-housing-and-commercial-lending-439214\/","title":{"rendered":"Fed\u2019s Schmid: Rising long-term rates are starting to strain housing and commercial lending"},"content":{"rendered":"<div>\n<p>Collins discussed rising borrowing costs at a Richmond Fed conference in Asheville, N.C., on Thursday, according to Axios.<\/p>\n<ul>\n<li>Jeff Schmid, Kansas City Fed president: Likened the challenge of separating strong demand from supply-driven inflation to a seven-layer dip: With AI and data centers, \u201cthere\u2019s too much beans in that dip.\u201d<\/li>\n<li>Susan Collins, Boston Fed president: AI investment \u201cdoes have broader effects, not just in particular sectors,\u201d but it \u201cremains to be seen\u201d whether investment will continue at its current pace.<\/li>\n<li>Tom Barkin: \u201cI think you\u2019re seeing this trillion-dollar AI buildout, and I think it\u2019s not surprising that rates go up if you\u2019ve got a lot more demand out there.\u201d<\/li>\n<li>Jeff Schmid: \u201cEven on the mortgage rate side, it\u2019s starting to affect home prices, which is how the price of credit works relative to valuation.\u201d<\/li>\n<li>Jeff Schmid: \u201cYou\u2019re starting to see some friction in some of the long-market users of credit,\u201d pointing to multifamily housing and commercial lending.<\/li>\n<\/ul>\n<p>Analysis: The market is doing some tightening for the Fed with the 10 year yield up 65 basis points from August 25 low, but the impact is uneven. Higher long-term borrowing costs are starting to bite in housing and commercial lending. For a beginner, the connection is straightforward: Higher financing costs make projects more expensive and reduce what buyers can afford to pay for property.<\/p>\n<p>At the same time, the AI buildout is supporting demand and helping growth hold up despite those higher costs. That complicates the Fed\u2019s job. These comments offer a mixed economic assessment rather than a clear signal on the next rate decision. The key question is whether AI spending maintains its pace\u2014or whether pressure on borrowers begins to produce a broader slowdown.<\/p>\n<p>                            This article was written by Greg Michalowski at investinglive.com.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Collins discussed rising borrowing costs at a Richmond Fed conference in Asheville, N.C., on Thursday, according to Axios. Jeff Schmid, Kansas City Fed president: Likened the challenge of separating strong demand from&hellip;<\/p>\n","protected":false},"author":216,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[86],"tags":[],"class_list":["post-439214","post","type-post","status-publish","format-standard","hentry","category-market-news"],"_links":{"self":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/439214","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/users\/216"}],"replies":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/comments?post=439214"}],"version-history":[{"count":0,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/439214\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/media?parent=439214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/categories?post=439214"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/tags?post=439214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}