Investment opportunities in multifamily housing lost some steam in Q4 2021, with the Freddie Mac Multifamily Apartment Investment Market Index (AIMI) falling by 4.8% from Q3 and 2.4% year-over-year. AIMI analyzes multifamily rental income growth, property price growth, and mortgage rates to measure multifamily market investment conditions. A decline such as this indicates that attractive investment opportunities are becoming more difficult to find. The report suggests that record multifamily price appreciation and rising mortgage rates offset net operating incomes (NOI), despite “unprecedented” income growth for multifamily investors. Property prices grew by 19.6% YOY, while NOI grew by only 17.7%. “The year-over-year AIMI decline shows us that it may be more difficult now to find attractive multifamily investment opportunities in some…
Good Morning! Today is Friday, March 18. Moderna asked the FDA to authorize a second COVID booster dose for all adults. Russian forces remain stalled outside Kyiv, taking heavy casualties. A 13-year-old was driving the truck that hit a van in Texas, killing nine people. The Mortgage Note Reports Race-Based Lending: The Right Way to Promote Social Justice? The Neighborhood Assistance Corporation of America (NACA) has announced a lending program for minority-owned businesses it calls “Economic Justice Loans.” Rates Break 4%:Mortgage rates averaged 4.16% this week, exceeding 4% for the first time since May 2019. Forbearances Rise: In a familiar pattern, forbearance rose by 8,000 last week (1%) after dropping to a post-pandemic low the week before. And in other…
Mortgage rates broke 4% for the first time since May 2019, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 4.16%. A year ago at this time, the 30-year FRM averaged 3.09%. “The 30-year fixed-rate mortgage exceeded four percent for the first time since May of 2019,” said Sam Khater, Freddie Mac’s Chief Economist. “The Federal Reserve raising short-term rates and signaling further increases means mortgage rates should continue to rise over the course of the year. While home purchase demand has moderated, it remains competitive due to low existing inventory, suggesting high house price pressures will continue during the spring homebuying season.” The Federal Reserve raised interest rates by a…
Russia’s invasion of Ukraine is rippling through the U.S. economy, according to March commentary from Fannie Mae’s Economic and Strategic Research (ESR) Group. The ESR Group predicts full-year 2022 real GDP growth of 2.3%, down from last month’s projected 2.8%. The group also increased its predictions about the 30-year fixed mortgage, bumping its forecast up to 3.8% in 2022 and 3.9% in 2023. Total home sales are now expected to drop 4.1% in 2022, compared to a 2.4% decline predicted last month. Home purchase loan volume should hold up but refinance activity is expected to plunge to only a third of originations. This should come as no surprise to mortgage professionals who are already seeing huge declines in refi activity.…
Good Morning! Today is Friday, March 11. President Biden will call for suspending normal trade relations with Russia, which would raise tariffs for many Russian products. Baseball players and owners struck a deal on a new contract, ending a lockout. The federal government extended the mask mandate on airplanes and other public transportation through mid-April. The Mortgage Note Reports Rate Reversal: Mortgage rates rose to 3.85%, reversing a brief period of declines brought on by uncertainty surrounding Ukraine. Forbearances Down: Forbearance plans dropped to a post-pandemic low this week, falling by 49,800 (-6.5%), according to Black Knight. And in other mortgage and housing news… Inflation Wreaks Havoc: The consumer price index for February rose 7.9% YOY, the highest level since…
Mortgage rates rose last week, reversing a brief period of declines brought on by uncertainty surrounding Ukraine, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 3.85%. A year ago at this time, the 30-year FRM averaged 3.05%. “Following two weeks of declines, mortgage rates rose this week as U.S. Treasury yields increased,” said Sam Khater, Freddie Mac’s Chief Economist. “Over the long-term, we expect rates to continue to rise as inflation broadens and shortages increasingly impact many segments of the economy. However, uncertainty about the war in Ukraine is driving rate volatility that likely will continue in the short-term.” The Consumer Price Index reached another high this week, standing at…
Good Morning! Today is Monday, March 7. Ukrainian resistance stalled Russian forces this weekend, driving them from the port city of Mykolaiv. This morning, Russia launched an artillery barrage there. Tornadoes in Iowa killed seven people and destroyed dozens of homes. The Mortgage Note Reports America’s Most Expensive Home Sets Record At Auction, New Owner Revealed: A Bel Air megamansion that was listed on the market for $295 million has been purchased at auction by the 40-year-old CEO of Fashion Nova. Fannie HPSI: Fannie Mae’s Home Purchase Sentiment Index rose this month despite consumers’ surly attitudes toward home prices and rising interest rates. loanDepot Promotion: Min Kim has been promoted to EVP, Marketing and Analytics at loanDepot. And in other…
More consumers than ever think mortgage rates and home prices will continue to rise, according to Fannie Mae’s Home Purchase Sentiment Index (HPSI). The HPSI rose by 3.5 points to 75.3 in February, with five of the index’s six components increasing month-over-month despite respondents’ surly attitude towards home prices and interest rates. However, the full index dropped 1.2 points year-over-year (YOY). The “Good Time to Buy” component is still hovering near its record low, with consumers saying they are deterred from homebuying by high prices. Respondents to the survey said they feel an improved sense of job security, but a significantly greater share– 67%, a record high for the HPSI– assume mortgage rates will rise higher. The report notes this…
Mortgage rates fell again last week, dropping to an average of 3.76% from 3.89%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 3.76%. A year ago at this time, the 30-year FRM averaged 3.02%. “While inflationary pressures remain, the cascading impacts of the war in Ukraine have created market uncertainty,” Freddie Mac Chief Economist Sam Khater said. “Consequently, rates are expected to stay low in the short term but will likely increase in the coming months.” The Fed said that it still plans to raise rates later this month despite uncertainty surrounding the Ukraine conflict. Fed Chairman Jerome Powell said the central bank would stick to its plan to reduce…
Mortgage rates took a surprise turn down last week, averaging 3.89% after weeks of rising, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 3.89%, down from 3.92%. A year ago at this time, the 30-year FRM averaged 2.97%. “Even with this week’s decline, mortgage rates have increased more than a full percent over the last six months,” said Sam Khater, Freddie Mac’s Chief Economist. “Overall economic growth remains strong, but rising inflation is already impacting consumer sentiment, which has markedly declined in recent months. As we enter the spring homebuying season with higher mortgage rates and continued low inventory, we expect home price growth to remain firm before cooling off…
