Rising interest rates have scrambled the plans of many real estate investors and finance leaders. No one knows how much more interest rates will rise, how much property prices will fall, or whether the U.S. economy will dive into a recession, a mild downturn, or even continue to grow.

All this uncertainty drives potential buyers away from deals, while potential sellers hesitate and many lenders make smaller loans—if they are lending at all. The capital markets for real estate have ground almost to a halt.

“It’s a capital markets recession for real estate,” says Ken Rosen, chairman of Rosen Consulting Group, based in Berkeley, California. He spoke at the 29^th ULI/McCoy Symposium on Real Estate Finance, a  gathering of real estate leaders held on December 9 in New York City, and named after real estate legend Bowen “Buzz” McCoy. “Money is, all of a sudden, not available or it is available at a very costly rate,” continued Rosen.

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