This week in rental property, the 30-year fixed mortgage rate slipped to 4.04 percent with the rising concerns on the world economy. HUD announces new fair housing rules to strengthen fair housing practice. CNBC gave an outlook on the housing market for the second half of the year. Interestingly, HUD released a report on housing market recovery with a different narrative. Big institutional investors are holding on to single-family rental homes that are becoming increasingly lucrative. Rent growth for apartments rose to 5.2 percent reaching the highest since 2000. Lastly, Realtytrac analyzed 285 counties and found 14 US housing markets where renting is economically better off than buying.
TWiRP
Mortgage Rates Dip Amid World Economic Concerns
The 30-year fixed-rate average slipped to 4.04 percent with an average 0.6 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 4.08 percent a week ago and 4.15 percent a year ago. The 30-year fixed rate has stayed above 4 percent for the past five weeks: http://www.washingtonpost.com/blogs/where-we-live/wp/2015/07/09/mortgage-rates-dip-amid-world-economic-concerns/
Obama Unveils Stricter Rules Against Segregation in Housing
The Obama administration announced an aggressive effort on Wednesday to reduce the racial segregation of residential neighborhoods. It unveiled a new requirement that cities and localities account for how they will use federal housing funds to reduce racial disparities, or face penalties if they fail.: http://www.nytimes.com/2015/07/09/us/hud-issuing-new-rules-to-fight-segregation.html
What to expect from housing in the 2nd half
The housing outlook for the second half of the year is all about affordability – for buying and renting. How bad will it get, and how much will it hurt the recovery in home sales?: http://www.cnbc.com/2015/07/07/what-to-expect-from-housing-in-the-2nd-half.html
HUD Report Shows Housing Market Recovery Slowdown
Although many economists, mortgage data analytics providers and the government-sponsored enterprises are reporting an active, healthy housing market, the Department of Housing and Urban Development (HUD) has a different narrative to describe the first quarter of the year: https://www.inman.com/2015/07/08/hud-report-shows-housing-market-recovery-slowdown/
For the full HUD’s National Housing Market Summary 1st Quarter 2015 report: http://www.huduser.org/portal/sites/default/files/pdf/NationalSummary_1q15.pdf
Big Investors Buy Fewer Homes But See Bigger Gains
Some credit them with saving the housing market. Others blame them for taking advantage of a crisis and bullying real homebuyers out of the American Dream. Whatever their role, large institutional investors put a floor on home prices during the housing crash by buying up thousands of distressed, single-family homes. Now they are slowing their purchases, but not exactly getting out of the trade. They are holding on to what is becoming an increasingly lucrative asset: The single-family rental home: http://www.cnbc.com/2015/07/06/big-investors-buy-fewer-homes-but-see-bigger-gains.html
Best Rent Growth in 15 Years for Apartments
New resident rents rose 5.2 percent over the 12 months that ended in the second quarter. That’s the biggest rent hike since 1999-2000, according to the latest data from MPF Research, based in Carrollton, Texas: http://nreionline.com/multifamily/best-rent-growth-15-years-apartments
Don’t Buy: 14 US Housing Markets where it makes Economic Sense to Rent
While building up equity in a home can be a great long-term investment, in some neighborhoods it makes more economical sense to rent. Realtytrac, a real estate information company, compiled data on 285 counties nationwide and analyzed the economics of renting instead of buying a home. They found the average cost to rent or own a 3-bedroom house and determined the percentage an average worker would have to spend from their weekly income: http://www.businessinsider.com/us-housing-markets-where-you-should-rent-2015-7?op=1#ixzz3fVsl8Zgh
For the Realtytrac’s full report, click here: http://www.realtytrac.com/news/realtytrac-reports/realtytrac-buy-to-rent-housing-market-analysis-july-2015/
