No Relief in Sight on Rents — 90 Seconds of Real Estate News (Jan 8)

Real Estate News — Friday, January 8, 2016

90 Seconds of News

Real Estate News — Friday, January 8, 2016

Freddie Mac — Mortgage Rates Start the Year Below Four Percent

  • 30-year fixed-rate mortgage (FRM) averaged 3.97 percent with an average 0.6 point for the week ending January 7, 2016, down from last week when it averaged 4.01 percent. A year ago at this time, the 30-year FRM averaged 3.73 percent.

No Relief in Sight on Rents |

  • Average national rent was $1,244 for the fourth quarter of 2015, a $54 increase from the average of $1,188 in the fourth quarter of 2014.
  • Occupancy was 95.0% in the fourth quarter, the highest 4Q rate since the 95.9% at the end of 2000.
  • Two metros, Portland, OR (12.0%) and Oakland (11.3%), ended the year with double-digit rent growth.

Calculated Risk: Fed: Q3 Household Debt Service Ratio Very Low

  • The DSR for mortgages (blue) are near the low for the last 35 years. This ratio increased rapidly during the housing bubble, and continued to increase until 2007. With falling interest rates, and less mortgage debt (mostly due to foreclosures), the mortgage ratio has declined significantly.
  • The consumer debt DSR (yellow) has been increasing for the last three years.

“Typical Mortgage Payment”: A Historical Comparison of the Monthly Payment to Buy a Home

  • In the Dallas metro area, for example, the median sale price reached a new peak of about $252,000 earlier this year, but in September the typical mortgage payment remained 24 percent below its inflation-adjusted peak in spring 2000.
  • Thanks to low mortgage rates (Figure 2), San Francisco’s typical mortgage payment of $4,360 this November (Figure 3) was still 13 percent below its inflation-adjusted peak of $4,997 in June 2007, when the median price was $825,000 and the average rate for a 30-year mortgage was about 6.7 percent, compared with 3.9 percent in November 2015.

In Real Estate, Your Personality Makes You Predictable — WSJ

  • Are you efficient, organized, thorough, diligent and detail oriented? Then you’re a good candidate for a fixed-rate mortgage.
  • The test asks takers to rate themselves on a scale from 1 to 5 on questions that measure standard personality traits: Openness (think: artistic and imaginative), Conscientiousness (efficient, organized), Extroversion (sociable, energetic), Agreeableness (forgiving, undemanding) and Neuroticism (tense, moody).


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