This week in rental property, average mortgage rates inched up before next week’s Federal Reserve announcement. Wall Street Journal argues that the recovery of housing sector isn’t contributing much to overall US economic growth, while Bloomberg suggests a different point of view. NBC news reports big investors are buying more new homes for rental purposes. Based on Trulia’s report, Business Insider illustrates on how colleges are clueless about the cost of off-campus housing.
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Average US rate on 30-year mortgage inches up to 3.9 percent; 15-year loan up to 3.10 percent
Average long-term U.S. mortgage rates inched up this week as financial markets awaited the Federal Reserve’s crucial decision next week on interest rates.
The subdued gains followed a sharp drop the previous week, as global markets continued to whipsaw amid economic disruption in China and uncertainty over the Fed’s interest-rate policy: http://www.foxbusiness.com/markets/2015/09/10/average-us-rate-on-30-year-mortgage-inches-up-to-3-percent-15-year-loan-up-to/
Why a Stronger Housing Sector Isn’t Boosting the U.S. Economy That Much
The problem: Housing still isn’t contributing much to overall economic growth because new construction of single-family homes, which packs an outsize economic punch, is stuck near levels hit during the early 1990s recession: http://www.wsj.com/articles/why-a-stronger-housing-sector-isnt-boosting-the-u-s-economy-that-much-1441646534
The U.S. Economy Is Just Starting to Tap Into a Big Source of Dry Powder
There’s a big reason to believe that the U.S. economy will be able to withstand the start of the Fed tightening cycle: There’s still plenty of pent up activity in the housing sector. And it’s hard to see the U.S. economy running out of steam with this much upside left in residential investment, according to some economists and analysts: http://www.bloomberg.com/news/articles/2015-09-10/the-u-s-economy-is-just-starting-to-tap-into-a-big-source-of-dry-powder
Housing Shift: Big Investors Snap Up New Homes for Use as Rentals
It was widely deemed a temporary play: Large-scale investors buying thousands of discounted foreclosed properties during the worst of the housing crash and turning them into single-family rentals. When home prices recovered, they would surely sell them for a hefty profit. The housing market is recovering, albeit more slowly than expected. Foreclosure volume is way down and home prices are way up, but these investors are not selling. They are buying more, and now they are buying new: http://www.nbcnews.com/business/real-estate/housing-shift-big-investors-snap-new-homes-use-rentals-n425166
Ride the Housing Recovery With These Stocks to Buy
Existing home sales have been rising in recent months as pent-up demand, low mortgage rates and an improved labor market boost homebuyers’ confidence. The recovery in the housing market is expanding throughout the economy to lift everything from mattress companies to home improvement stores to roofing suppliers, creating opportunity for investors to ride the housing market’s recovery. Here’s a look at investments analysts say could benefit from the recovery in the housing market: http://money.usnews.com/money/personal-finance/mutual-funds/articles/2015/09/08/ride-the-housing-recovery-with-these-stocks-to-buy
Colleges are clueless about the cost of off-campus housing
The first lesson college students and their parents need to learn: Off-campus housing costs may be far more than what their schools estimate on their websites. Yet on-campus living may still be more expensive: http://www.businessinsider.com/cost-of-off-campus-housing-in-college-2015-9
