This week in rental property, mortgage rates pulled back by 0.04 percent from last week\u2019s 4.04 percent to 4.00 percent. On Wednesday, the Federal Reserve announced that it plans to raise interest rates later this year. We take a look at the LA Times article on the effects of\u00a0federal funds rate on the\u00a0economy and the Wall Street Journal\u2019s article on how to get ready for rising interest rates. Then we focus on the commercial real estate forecast\u00a0when the Fed tightens by Forbes. Meanwhile,\u00a0the\u00a0shortage in the rental market is pushing the rent growth far above the overall consumer price growth. Lastly, here are the top 10 metros for rent growth in May 2015.<\/p>\n
According to Freddie Mac, conforming 30-year mortgage interest rates eased 4 basis points (0.04%) this week to reach to 4.00%, on average, nationwide. Rates are lower on weaker-than-expected economic data, economic uncertainty overseas, and expectations that the Federal Reserve may not see sustained domestic growth until sometime in 2016: http:\/\/themortgagereports.com\/17736\/current-mortgage-rates-conv-four-percent<\/a><\/p>\n The\u00a0Federal Reserve<\/a>\u00a0indicated on Wednesday, following a meeting of its policy committee, that it plans to raise interest rates even more slowly than its officials had previously predicted.\u00a0The Fed still plans to start raising rates before the end of the year. Janet L. Yellen, the Fed\u2019s chairwoman, said that growth had rebounded after a difficult winter, and that the Fed was simply waiting to make sure the economy was finally ready for higher rates. But she emphasized that even after rate hikes began, borrowing costs would remain low for years: http:\/\/www.nytimes.com\/2015\/06\/18\/business\/economy\/federal-reserve-interest-rates-yellen.html<\/a><\/p>\n Here are some common questions about interest rates and how the central bank manipulates them to help the economy: http:\/\/www.latimes.com\/business\/la-fi-fed-interest-rate-qa-20150615-story.html<\/a><\/p>\n With the Federal Reserve signaling a rate increase this year and with most economists predicting rising rates, it may seem like the answer is simply abandon bonds and move to cash. The idea would be to sidestep the rate climb and then reinvest later when yields are higher. Before you try that, however, consider the following: http:\/\/blogs.wsj.com\/totalreturn\/2015\/06\/19\/how-to-get-ready-for-rising-interest-rates\/<\/a><\/p>\n Investment real estate has been generally appreciating in this environment of expanding economic activity and low interest rates, but what will happen when the Fed tightens? http:\/\/www.forbes.com\/sites\/billconerly\/2015\/06\/18\/commercial-real-estate-forecast-after-the-fed-tightens\/<\/a><\/p>\n Landlords keep cranking up rents, with annual increases far outpacing price growth elsewhere in the economy, according to data released Thursday.\u00a0Rents in May were up 3.5% from a year earlier, while a gauge for overall consumer prices showed no growth, the U.S. Labor Department reported: http:\/\/www.marketwatch.com\/story\/rent-inflation-shows-no-signs-of-letting-up-2015-06-18<\/a><\/p>\n Oakland, Calif. topped the list of markets with the largest annual rent growth in May for the top 50 apartment markets, with a whopping 14.3% rent growth. In fact, the West once again dominated the rankings, with Atlanta as the only Eastern market cracking the Top 10, clocking in ninth with 7% annual rent growth.\u00a0Here are the Top 10 metros for rent growth in May: http:\/\/www.multifamilyexecutive.com\/business-finance\/top-10-rent-growth-markets-of-may-2015_o<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" This week in rental property, mortgage rates pulled back by 0.04 percent from last week\u2019s 4.04 percent to 4.00 percent. On Wednesday, the Federal Reserve announced that it plans to raise interest rates later this year. We take a look at the LA Times article on the effects of\u00a0federal funds rate on the\u00a0economy and the […]<\/p>\n","protected":false},"author":68,"featured_media":2676,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"TWiRP-June 20, 2015 https:\/\/wp.me\/p4cqZp-RG","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[11],"tags":[157,435,470,621,879,1129],"class_list":["post-3328","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-twirp","tag-commercial-real-estate","tag-how-to-get-ready-for-rising-interest-rates","tag-interest-rates","tag-mortgage-rates","tag-rent-inflation","tag-top-rent-growth-markets"],"jetpack_publicize_connections":[],"aioseo_notices":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/rentpost.com\/blog\/wp-content\/uploads\/2015\/01\/twirp_logo_1600x1600.png","jetpack_shortlink":"https:\/\/wp.me\/p4cqZp-RG","_links":{"self":[{"href":"https:\/\/rentpost.com\/blog\/wp-json\/wp\/v2\/posts\/3328","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rentpost.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rentpost.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rentpost.com\/blog\/wp-json\/wp\/v2\/users\/68"}],"replies":[{"embeddable":true,"href":"https:\/\/rentpost.com\/blog\/wp-json\/wp\/v2\/comments?post=3328"}],"version-history":[{"count":0,"href":"https:\/\/rentpost.com\/blog\/wp-json\/wp\/v2\/posts\/3328\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/rentpost.com\/blog\/wp-json\/wp\/v2\/media\/2676"}],"wp:attachment":[{"href":"https:\/\/rentpost.com\/blog\/wp-json\/wp\/v2\/media?parent=3328"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rentpost.com\/blog\/wp-json\/wp\/v2\/categories?post=3328"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rentpost.com\/blog\/wp-json\/wp\/v2\/tags?post=3328"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Fed, in Shift, Expects Slower Increase in Interest Rates<\/h3>\n
How a key Fed Interest Rate Affects the Economy<\/h3>\n
How to Get Ready for Rising Interest Rates<\/h3>\n
Commercial Real Estate Forecast After the Fed Tightens<\/h3>\n
Rent Inflation Shows No Sign of Letting Up<\/h3>\n
Top 10 Rent Growth Markets of May 2015<\/h3>\n