This week in rental property, in a week marked by a stock market turmoil from Asia, average 30-year mortgage rates dropped to 3.84% from 3.93%. We take a close look at the Chinese stock market turmoil with an article from Economist. Consequently, Chinese investors are trying to protect their wealth by diversifying their assets by buying US real estate. Then, listen to domestic fundamentals on why U.S. is resilient enough to weather the forces roiling stock prices. Meanwhile, U.S. home rents jumped in July while house prices showed signs of flagging. Check out the nation’s top cities for multi-family rental demands. Lastly, here are 10 places where renting a home beats buying.
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Average 30-year mortgage rate drops to 3.84% from 3.93%
Mortgage giant Freddie Mac said Thursday the average rate on a 30-year fixed-rate mortgage fell to 3.84% from 3.93% a week earlier. The benchmark rate hasn’t been that low since May 21. The rate on 15-year fixed-rate mortgages declined this week to 3.06% from 3.15%: http://www.usatoday.com/story/money/personalfinance/2015/08/27/mortgage-rates/32477661/
China and the world economy Taking a tumble
THE ability to make stockmarkets boomerang is usually reserved for central bankers. But on August 24th, hours into a global market rout that had started in Asia and was sweeping its way through Europe and then America, Tim Cook, the boss of Apple, turned his hand to it. “I can tell you that we have continued to experience strong growth for our business in China through July and August,” he wrote in an e-mail to CNBC, a financial-news channel. “I continue to believe that China represents an unprecedented opportunity over the long term: http://www.economist.com/news/briefing/21662581-stockmarket-turmoil-china-need-not-spell-economic-doom-it-does-raise-questions-far
Foreign investors are scrambling to buy US housing
Wealthy, very nervous foreigners yanking their money out of their countries while they still can and pouring it into US residential real estate, paying cash, and driving up home prices – that’s the meme. But it’s more than a meme as political and economic risks in key countries surge: http://www.businessinsider.com/foreign-investors-buying-us-homes-2015-8#ixzz3kDAJ0Pih
Housing, Consumer Confidence Are Bright Spots in U.S. Economy
A firming housing market and growing consumer confidence, alongside nearly five years of steady job creation, suggest the U.S. is resilient enough to weather the forces roiling stock prices and hurting commodity-producing countries reliant on China as an export market.
Instability in China and concerns about a Federal Reserve rate increase in coming months have caused turbulence in U.S. and other markets recently. But the turmoil doesn’t mesh with the domestic economy’s fundamentals: http://www.wsj.com/articles/u-s-new-home-sales-rise-in-july-1440512007
Rents Continue to Rise While Housing Market Cools Down
The higher rents suggest that demand for apartments is continuing to grow as the share of Americans owning homes has dropped. The share of the U.S. population who own homes has fallen to 63.4 percent, a 48-year low, according to the Census Bureau: http://www.nbcnews.com/business/real-estate/rents-continue-rise-while-housing-market-cools-down-n415481
In Demand: Top Cities for Multi-Family Rentals
The demand for rental housing is increasing nationwide, with more and more people turning to renting in America’s largest cities. A combination of factors – including limited inventory levels, declining vacancy rates and continued job growth – have pushed rental prices up by 6.5 percent over the past year, to reach a record high of $1,155 in July 2015: http://www.cpexecutive.com/property-types/multi-family/in-demand-top-cities-for-multifamily-rentals/1004125911.html
10 places where renting a home beats buying
In the 285 U.S. counties RealtyTrac and HUD analyzed, 97 (34%) are more affordable for renters seeking a three-bedroom home than they are for homebuyers seeking the same. That’s still the minority, but that’s up from 80 rent-friendly counties just three years ago. That also includes counties where, just a year ago, it was cheaper to buy than it was to rent. If you’re in Sacramento County, Calif.; San Joaquin County, Calif. in the Stockton metro area; Lancaster County, Pa.; Spokane County, Wash.; Polk County, Iowa in the Des Moines metro area; Reno, Nev.; Sarasota, Fla.; Jacksonville, Fla. or St. Louis, you likely shouldn’t have waited a year to buy a home: http://www.cbsnews.com/media/10-places-where-renting-a-home-beats-buying/
