Hello Brick Brief readers, 

Happy Friday In today’s news,

🔥 Rates Climb As Inflation Risks Build

Rates continued their march higher on inflation fears, with the 30Y mortgage rate up 14 bps to 6.62% and the 10Y Treasury yield up 6 bps to 4.41%. Fed Governor Barr supports holding rates steady until inflation shows clear improvement, while Fed Governor Cook is warning that inflation risks are rising from oil and tariffs; economists still expect rate cuts in September. Trump extended the Iran attack deadline by 10 days as the price of oil nears $108.

🏠 Crypto Enters Mortgage Financing

Coinbase and Better have partnered on a crypto-backed mortgage structure now accepted by Fannie Mae, where borrowers take out a traditional mortgage alongside a second crypto-backed loan to fund the down payment. This structure allows borrowers to leverage crypto without selling, but introduces double leverage as they borrow against assets to secure a mortgage, increasing risk if crypto values fall.

Other key news today includes:

Trump extends Iran attack deadline by 10 days as oil nears $108 and troop buildup considered – Ongoing conflict and Hormuz uncertainty continue to drive energy price volatility and inflation risks across global markets (Bloomberg)

Fed’s Barr says rates should remain on hold amid Middle East uncertainty – Elevated core inflation and persistent tariff pressures could keep price risks higher for longer (Bloomberg)

Fed’s Cook says Iran war has shifted risk toward higher inflation – Rising oil prices and tariffs are pushing inflation further above the Fed’s 2% target (Reuters)

Economists expect Fed to hold rates until September with cuts later in 2026 despite market pricing hikes – Inflation from oil shock keeps policy restrictive even as forecasts still point to eventual easing (Reuters)

Continuing jobless claims fall to 1.82M, lowest in nearly two years – Labor market remains stable with layoffs subdued despite rising economic uncertainty (Bloomberg)

NAIOP reports CRE valuations stabilized in 2H 2025 as lending and transaction volumes rise – Recovery remains sensitive to interest rates with private buyers driving activity and institutions focusing on industrial and multifamily (ConnectCRE)

New York City launches fast-track program to cut housing approvals to 10 months from 18 – Initiative aims to accelerate affordable housing development as city faces severe supply shortage (Homes.com)

NYC’s Rent Guidelines Board reports rent-stabilized NOI rose 6.2% between 2023 and 2024 – Gains were uneven across boroughs with Bronx declines and rising distress as policymakers push toward potential (TheRealDeal)

Mortgage rates rose to 6.62% in March as Iran conflict pushed yields higher – Weekly purchase applications fell 5% and demand growth slowed as rising rates pressure housing activity (HousingWire)

MBA reports median mortgage payment fell to $2,061 in February as affordability improved – Payments declined 6.5% YoY and PAPI dropped nearly 10% as lower rates and wage growth eased buyer costs (HousingWire)

Education Department to cut 300K SF and relocate DC headquarters amid downsizing push – Move follows >40% workforce reduction and signals broader federal effort to shrink office footprint and dispose of surplus real estate (Bloomberg)

Colliers relocates Dallas office to North Dallas to reduce employee commute times – Rising post-pandemic travel times are shaping office location decisions and shifting demand toward suburban nodes (CoStar)

On Location leases 108K SF at Southwest Carpenters Pension Trust’s office tower in Los Angeles, CA ahead of the 2028 Olympics – The expansion adds space to support operations tied to the upcoming Games (Bisnow)

Gladstone Institutes leases 105K SF at Alexandria Real Estate Equities’ life sciences building in San Francisco, CA – The expansion adds lab space and signals continued investment in Mission Bay despite funding pressure (TheRealDeal)

Cold storage vacancy hits ~7% 20-year high as 10M SF of new supply outpaces demand – Slowing food spending and rising rents are weakening absorption and pressuring newer operators (Bisnow)

Apple adds Bosch and Cirrus Logic to US manufacturing program with $400M investment through 2030 – Expansion aims to localize chip and component production amid supply chain reshoring push (Reuters)

Reshoring continues to boost domestic pharmaceutical and manufacturing investment as companies shift production back to the U.S. to reduce supply chain risk and improve resilience

NRF projects U.S. retail sales to reach $5.6T in 2026, up 4.4% YoY – Growth outpaces pre-pandemic averages as consumer spending remains resilient despite economic uncertainty (REBusinessOnline)

Thrift stores outperform traditional and luxury apparel with rising traffic and repeat visits – Higher-income shoppers and social-driven resale trends are reshaping the sector into a mainstream retail channel (Placerai)

Data center investment may shift to US as Middle East war raises infrastructure risk – Surging AI demand has strained US power grid and forced utilities to add capacity (Bloomberg)

TDR Capital and I Squared prepare ~$15B US IPO for Aggreko – Temporary power and temperature control provider could list as soon as 2H 2026 (Bloomberg)

Aggreko is seeing rising demand from data centers for power and cooling solutions and is projecting to double its liquid-cooled capacity in 2026 

Meta boosts AI data center investment in El Paso, TX to $10B as it targets 1 GW capacity by 2028 – Expansion reflects accelerating Big Tech AI infrastructure spending expected to exceed $630B this year (Reuters)

KKR and Carlyle partner with U.S. Army to develop $4B data center projects on military bases – Two 1–3 GW facilities in Texas and Utah will support rising AI demand through 50-year land leases without direct Army capital investment (Bisnow)

US grid constraints force data centers to adopt flexible power usage strategies – Electricity demand could reach 17% of total supply by decade’s end, pushing operators to shift workloads and reduce consumption during peak periods (Reuters)

Pennsylvania grid delays push Three Mile Island restart connection to 2031 as data center power demand surges – Transmission constraints threaten timelines for supplying energy to Microsoft-linked facilities (Reuters)

The delays are due to transmission and grid interconnection upgrades required by PJM, which push back the plant’s ability to connect to the grid despite being operationally ready earlier

Blue Origin proposes 51,600-satellite network for space-based AI data centers – Project aims to bypass Earth’s energy and water constraints as AI infrastructure demand surges (CoStar)

Outpatient surgery center leases jumped 145% from 2022 to 2025 as healthcare real estate demand accelerates – Growth is driven by aging population expanding 4.6% annually and shift toward decentralized care models (CBRE)

Coinbase partners with Better to offer crypto-backed down payments for homebuyers – Buyers can borrow against bitcoin or USDC without selling assets, adding leverage to already expensive home purchases (Reuters)

​​This structure allows borrowers to borrow against crypto for a down payment and then borrow again with that capital to finance a home purchase. This allows them to retain upside exposure without selling assets, but raises concerns about double leverage and amplified risk if crypto values fall

Fannie Mae accepts first crypto-backed mortgage product through Coinbase and Better – Borrowers can use bitcoin or USDC as collateral for down payments while taking on a second loan (CNBC)

Home Depot expands AI-powered project planning tools for construction pros – New platform streamlines estimating and purchasing workflows as contractors seek faster project execution (HousingWire)