At the beginning of last week, a threatening pall covered a considerable portion of media financial coverage, with round-the-clock reporting resembling a horserace between Possible Disaster #1 (a collapse in the banking industry) and Possible Disaster #2 (runaway inflation). For the moment, Possible Disaster #3 (recession/depression) had fallen far behind the two favorites.

Fortunately, by midweek, reporting on the dual worries lowered from the earlier near-hysterical pitch. The change was due to the Federal Reserve’s much-anticipated decision to raise its benchmark Fed Funds rate by a modest quarter of a point. Even more soothingly, the announcement was accompanied by a hint that this might be the last in the current rate run up to 5%. By week’s end, many media commentaries seemed to have allowed both disaster possibilities to retreat to the ‘not just yet’ tier—which moved it a notch closer to ‘maybe not going to happen at all’ status.

The effect on St. Cloud homes that are now—or soon will be—listed will most likely be largely psychological, and mostly benign. Since the majority of St. Cloud home sales involve lending institutions, whenever headlines threaten any kind of bank instability it tends to undermine the confidence consumers place in all their dealings with financial institutions. The wall-to-wall reporting following this month’s collapse of the Silicon Valley and Signature banks more than halved the faith of consumers. Fortune.com polling showed a drop to 10% from 22% of U.S. adults who say they have “high confidence in the nation’s banks.” Thirty-one percent say they “have hardly any.”

Even so, the net effect on St. Cloud home sales was likely to be unsubstantial. For those who might decide to hold off until the nation’s financial affairs settle into a more predictable pattern, there were others who sensed opportunity. The NAR Magazine thought the banks’ collapses “may drive mortgage rates lower.” Moneymorninglive.com headlined an equation: “Bank Failures = Opportunity.” CNBC was on record having aired the opinion that, if “this mini banking crisis” were to drive a change in consumer behavior, it might have a lasting impact on rates.

The major decisions that go with any move to a new residence involve long-range consequences that are seldom compromised by short-term gyrations. When a change in your St. Cloud real estate plans is imminent, I hope you’ll call! 

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