A renowned research firm, identified as Weiss Ratings recently warned the general public against the emerging risks associated with crypto mortgages, particularly in the wake of the current economic climate in the United States. The Florida-based research firm identified its focus on Milo. The latter manifested as a virtual banking project based in Miami, rendering 30-year mortgages backed by Bitcoin(BTC), Ethereum(ETH), or stable coins. Accordingly, the Miami-based Milo offers zero down payment while its loan fees differ between 3.95% and 5.95%.
According to reports issued on May 3rd, Jon D. Markman, Weiss Rating analyst alerted users as regards the acquisition of such mortgages. Jon D. Markman, however, urges the general public on mortgages. He premised his analysis on the declining performance of stocks and crypto this year, the U.S housing bubble, rising interest rate, and the Federal Reserve’s upcoming policy changes.
Furthermore, the analyst explained that the current status of the product remains a win-win situation when real estate and crypto prices keep increasing. He asserted that both real estate and crypto prices remain uncertain winners in near future.
Now, Bitcoin stays off by 40% since it attained $66,000 in November 2021. Markman, however, believed this development fermented the hike in the property price in the U.S. He said the values of U.S properties now face headwinds from alterations in Fed policy and rising mortgage rates.
Weiss analyst expresses optimism in some crypto stakings
The Weiss rating analyst, however, inferred that not all crypto stakes appear bad. According to him, regardless of the market variables, the chances to attain success in crypto stakings still remain feasible. Furthermore, several cryptos and stock shareholders seem to negatively anticipate a stern surge in interest rates this year. This hike, as reported manifests in line with Federal Revenue’s intent to reel in inflation.
Additionally, Macro Analysts such as Alex Krueger also averred that the Fed report assigned for this week will ultimately define the future of the market. He claims crypto and real estate markets look set to go through lackluster performance occasioned by a myriad of factors.
Furthermore, Users are urged to top up their collateral within 48% hours of attaining the minimum rate. This results from fact that crypto-assets can dip in value with zero consequences as long as it doesn’t dip to 35% of total loan amount. Also, stable coins can come in handy in times of market inconsistency.
Recall Weiss Ratings mortgage company, Milo raised $17 million worth of series A funding in March. Milo further revealed expansion plans in order to meet wider demands.
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