This week in rental property, fixed mortgage rates sharply dropped to the lowest level in six months. Historically low mortgage rates and high home values are spurring cash-out refinancing. Chinese are now the top foreign buyers of U.S. properties, and nearly half of them are paying cash. According to a survey, property managers are expecting rents to rise as much as 8 percent next year. Freddie Mac is forecasting the U.S. multifamily rental market to remain strong for several more years. Lastly, check how median rent prices in top cities change monthly.
TWiRP
Fixed mortgage rates tumble to lowest levels in six months
Last week’s poor jobs report drove mortgage rates down this week, according to data released Thursday by Freddie Mac.
The 30-year fixed-rate average tumbled to 3.76 percent with an average 0.6 point, sinking to its lowest level in six months. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 3.85 percent a week ago and 4.19 percent a year ago. Since July, the 30-year fixed-rate average has fallen 28 basis points. (A basis point is 0.01 percentage point.): http://www.washingtonpost.com/blogs/where-we-live/wp/2015/10/08/fixed-mortgage-rates-tumble-to-lowest-levels-in-six-months/
Why mortgage rates matter this weekend
Like most retailers, real estate agents and homebuilders are on a big sales push this Columbus Day weekend. For the housing market, it is something of a last hurrah before potential buyers head back inside for the winter. That is why even the small interest rate move higher this week is top of mind this weekend: http://www.cnbc.com/2015/10/09/why-mortgage-rates-matter-this-weekend.html
Cash-Out Refinance Rush Is On as Mortgage Rates Fall Further Below 4%
Low mortgage rates and higher home values spurred a 68% increase in cash-out refinancing year over year, based on data compiled by Black Knight Financial Services through August. By refinancing, borrowers are booking savings of an average $136 in principal and interest each month and cutting their interest rates by just over 1%, according to Black Knight data through the second quarter of this year: http://www.nerdwallet.com/blog/mortgages/cash-out-refinance-mortgage-rates/
Chinese money flows into US housing
From sunny suburban developments in Irvine, California, to shiny new condominium towers overlooking Manhattan’s skyline, Chinese buyers are sinking cash into U.S. residential real estate. Chinese are now the top foreign buyers of domestic properties, according to the National Association of Realtors, and nearly half of them are paying cash, according to RealtyTrac, a real estate sales and analytics company: http://www.cnbc.com/2015/10/06/chinese-money-flows-into-us-housing.html
Renters, get out your checkbooks, hikes are coming
Property managers in the U.S. are raising rents – possibly by as much as 8 percent next year – as demand rises and vacancies fall, a new survey from property rental website Rent.com found: http://www.cnbc.com/2015/10/07/rentcom-survey-of-property-managers-finds-rents-rising-in-2015-2016.html
Multifamily Market in U.S. to Remain Strong for Several More Years
Based on Freddie Mac’s Multifamily Outlook released this week, the U.S. multifamily rental market continues its 5-year streak of robust growth that began just after the Great Recession ended and is expected to remain strong for several more years: http://www.worldpropertyjournal.com/real-estate-news/united-states/freddie-mac-multifamily-outlook-multifamily-rental-market-data-2015-apartment-investor-report-steve-guggenmos-apartment-news-9408.php
Zumper National Rent Report: October 2015
High priced cities are getting more expensive; in fact, the top four cities on our list all saw rent increases in the near term. San Francisco widened its gap between NYC, with rent prices increasing 2.5% last month and 3.4% in the trailing quarter. September again marked a new record high for the city, now with a median one bedroom of $3,620 and two bedroom of $5,000. Rents in the city are up 13.1% in the past year: https://www.zumper.com/blog/2015/10/zumper-national-rent-report-october-2015/
