How will falling interest rates impact real estate markets?

I think there's not an all clear sign because the market from a technical perspective

still has a lot of things going on that we're watching very closely, but with rates coming down that's a huge help.

The Fed has begun a long awaited cutting cycle, potentially providing some relief to rate sensitive sectors.

But will commercial real estate be one of them or will the structural

forces that have battered the sector, especially the office sector, continue to dominate?

And what does this all mean for housing? I'm Allison Nathan and this is Goldman Sachs exchanges.

Today I'm joined by my Goldman Sachs research colleague Lautfiqueau, who heads up

credit mortgages and structured products research and by Jeff Fine, global Cohead of Alternatives Capital Formation in the firm's

Asset and Wealth Management Business. Lautby Jeff, welcome back to the program.

Thanks for having us.

Thanks, Allison.

So Lautby, let me start with you because when we last sat down on this topic in the spring of

2023, we were really in a very different macroeconomic environment.

Inter-

Inter-Spiking, inflation was a rising concern, and we were on the heels, if you remember, it was just right after the regional banking crisis.

That really revolved around the commercial real estate sector.

But a lot has changed since then.

Inflation fears have obviously subsided if anything, growth fears are overtaking

inflation fears and rates are on the decline.

We obviously had the 50 basis point cut from the Fed this week and of course interest rates

themselves have come down pretty dramatically. So is this a better macro backdrop for the

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