TWiRP- May 30, 2015

This week in rental property, 30-year fixed mortgages rates climbed to the highest levels of the year. Next, multifamily market developers and commercial real estate executives share their sentiments on the market expectations. Then we look at 17 markets where rents are booming. Refinancing is overtaking new purchase loans due to the under 4% mortgage rates. Lastly, real estate crowdfunding is gaining popularity to be an alternative to the outdated mortgage system.


Fixed mortgage rates soar to their highest levels of the year

The 30-year fixed-rate average climbed to 3.87 percent. Since falling to 3.65 percent in late April, the 30-year fixed rate has risen 22 basis points in the past five weeks. (Points are fees paid to a lender equal to 1 percent of the loan amount.):

Developers’ Confidence About Multifamily Market Remains Steady in the First Quarter

The Multifamily Production Index (MPI), released by the National Association of Home Builders (NAHB), held steady with a reading of 54 for the first quarter of 2015. This is the 13th consecutive quarter with a reading of 50 or above:

Commercial Real Estate Executives Comment on Market Cycle, Expect Asset Values to Stabilize

A number of commercial real estate executives participating in The Real Estate Roundtable’s latest quarterly “Sentiment Index” expect market conditions and prices to continue to stabilize over the next 12 to 24 months:

17 markets where rents are booming

The U.S. multifamily sector experienced a 5 percent rise in effective rent growth year over year in April and a 2.7 percent increase in rents since the beginning of this year. This overall growth can mainly be attributed to a consortium of cities where rents rose by at least 6 percent over the past 12 months:

Refinancing is Still Super-Hot in Today’s Low Mortgage Rate Environment

With mortgage rates under 4%, refinance loans are overtaking purchase loans. In April, refinances accounted for nearly half of all loans closed by U.S. lenders, grabbing a 47% market share:

The Revolution in Real Estate Crowdfunding

Real estate crowdfunding enable individuals to choose the specific properties to invest in. It has gained increasing popularity due to faster process, more transparent, and smaller financing. Real estate crowdfunding could have a lot of potential and is yet in its infant stages: