This week in rental property, 30-year fixed mortgage rates has climbed over 4% for the first time this year. With this in mind, we take a look at the trend in homeownership rate written by the Wall Street Journal. Time.com says that renting a home is the norm for the new households. A study shows that renters who invest are better off buyers. Meanwhile, large West Coast cities offered the best return on investment for owners and sellers of rental properties. Finally, Forbes has compiled a list of five most overvalued and undervalued housing markets in the country.
TWiRP
Mortgage Rates This Week
Mortgage rates vaulted above 4% for the first time this year, posing a challenge to the housing market’s strengthening recovery. The average rate for a 30-year, fixed-rate mortgage rose to 4.04% from 3.87% the previous week to the highest level since last October, according to mortgage-finance company Freddie Mac: http://www.wsj.com/articles/mortgage-rates-top-4-in-test-for-housing-1434063061
New Housing Headwind Looms as Fewer Renters Can Afford to Own
Last decade’s housing crisis could give way to a new one in which many families lack the incomes or savings needed to buy homes, creating a surge of renters and a shortage of affordable housing. The U.S. homeownership rate is below where it stood 20 years ago when President Bill Clinton launched a national campaign to encourage Americans to buy homes. Conventional wisdom says the rate, at 63.7%, is leveling off to where it was for decades before the housing-market peak: http://www.wsj.com/articles/new-housing-crisis-looms-as-fewer-renters-can-afford-to-own-1433698639
Renting a Home Could Become the New Normal
A report by the Urban Institute projects that even after the housing crash and the Great Recession are a distant memory, homeownership rates in America will continue to decline. The report estimates that between 2010 and 2030, the majority (59%) of the 22 million new households that will form will rent, while just 41% will buy their homes: http://time.com/money/3917741/rent-home-apartment-recession-wages-millennials/
Housing Market Becoming More Favorable for Renters According to Latest Buy versus Rent Index
The latest national housing market index produced by Florida Atlantic University and Florida International University faculty indicates it is becoming more favorable for renters than buyers in terms of wealth accumulation: http://www.multifamilybiz.com/News/6250/Housing_Market_Becoming_More_Favorable_for_Renters…
Investors See Best Returns in West
During the second quarter of 2015, large West Coast cities offered the best return on investment (ROI) for owners and sellers of rental properties. Four of the top five markets for overall ROI performance last quarter were San Francisco, Seattle, San Jose and Portland, Oregon, according to a report released by All Property Management. Denver occupied the other spot in the top five: http://www.inman.com/2015/06/11/investors-see-best-returns-in-the-west/
America’s Most Overvalued And Undervalued Housing Markets
Forbes has compiled a list of the five most overvalued and undervalued housing markets in the country based on its most recent quarterly Sustainable Home Price model, which weighs home price trends against the economic fundamentals of the local market, including income growth, unemployment rates, population growth, mortgage rates, rental prices, buyer demand and inventory levels. Check out the details: http://www.forbes.com/sites/erincarlyle/2015/06/08/americas-most-overvalued-and-undervalued-housing-markets-in-2015/
