Rent Control Proposal For Subsidized Housing Meets Opposition

The Biden administration’s move to cap rent increases for affordable housing units has split support in the industry. Officials announced last week that the administration will impose a 10% cap on YOY rent increases for property owners who are part of the Low-Income Housing Tax Credit program. Currently, LIHTC allows increases of 5% or double the percentage change in national median income, whichever is higher. The proposal would limit rent increases on these properties to no more than 10% annually, doing away with the income change option. Proponents say the plan would help stabilize housing for low-income Americans reliant on subsidized housing. “The decision to prevent egregious rent increases is an important win for the millions of renters living in…

Biden Addresses Housing Crisis In State Of The Union

President Biden used the State of the Union address Thursday to tackle the nation’s housing crisis and propose big plans to boost activity. “I know the cost of housing is so important to you. If inflation keeps coming down, mortgage rates will come down as well. But I’m not waiting,” he said in the address. The administration proposed a mortgage relief plan providing first-time homebuyers an annual credit of $5,000 for two years, effectively a $10,000 mortgage rate buydown that would save as much money as a 1.5% rate reduction. Another credit, aimed at current homeowners, would offer a one-year, $10,000 credit to families who sell their starter homes, helping to turn inventory over. More than 3.5 million middle-class buyers…

Rate Locks Dropped Again In May As Refis Hit New Low

Rate lock volumes dropped again in May by 4.8% despite interest rate growth slowing, according to Black Knight’s latest Originations Market Report. While conforming 30-year rates rose at the beginning of the month to 5.5%, they cooled by month-end to 5.34%, 7 basis points down from April. Still, lock volumes fell for both rate/term and cash-out refis, down 23.6% and 11.9% respectively. Cash-outs are now down 42.2% from last year. “Ultimately, our OBMMI daily interest rate tracker showed 30-year conforming offerings finishing the month at 5.34%, down 7 basis points from last month. Still, despite this plateau in rates, rate lock volume continued to slide in May, with declines seen across all loan purposes,” said Scott Happ, president of Optimal…

Dems Release Exhaustive Housing Policy Agenda

By Jim Perskie Opposing wings of the Democratic Party released sweeping policy recommendations, including proposals to reverse policies and practices that “have made homeownership all but impossible for millions of working families.” The proposals – released by the Biden-Sanders Unity Task Force – were released Wednesday as part of a 110-page document meant to bring together supporters of former Vice President Joe Biden and Sen. Bernie Sanders ahead of the November election. “Democrats believe the government should take aggressive steps to increase the supply of housing, especially affordable housing, and address long-standing economic and racial inequities in our housing markets,” the proposal states. “We will equalize access to affordable credit and improve access to down payment assistance to help families of color, low-income…