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Prices in the commercial real estate market may have risen too far too fast, making the sector vulnerable to economic shocks, the Federal Reserve stated in its Monetary Policy Report to Congress, Bloomberg reported June 21.
Many mortgage servicers continue to use outdated technology that hurts consumers and is in violation of the Consumer Financial Protection Bureau’s new servicing rules, the CFPB revealed June 22 in a special supervision report. The biggest violations concern loss mitigation and servicing transfers.
An 11th stock market sector that will be devoted to real estate will debut on Sept. 1, and real estate stocks and the mutual funds holding many of them could see a windfall of billions of dollars, Nasdaq reported June 17.
Average fixed mortgage rates remained largely unchanged this past week, staying near a three-year low as rates slowly adjust to 10-year Treasury yields, Freddie Mac reported June 23 in its Primary Mortgage Market Survey.
Homes in 18 percent of housing markets are less affordable in the second quarter than their historical normal levels, up from 5 percent of markets above historical norms in the first quarter but down from 20 percent of markets at the same point last year, analytics firm RealtyTrac reported June 22.
The nation’s housing market continues to recover, but tight mortgage credit, rising rents and increased income segregation have slowed the pace, the Harvard Research Center’s Joint Center for Housing Studies reported June 22 in its The State of the Nation’s Housing report.
Homes purchased with cash accounted for 33 percent of all transactions in March, a decrease of 2.4 percentage points from the same period a year ago, analytics firm CoreLogic reported June 23. Cash sales peaked in January 2011 when they accounted for 46.6 percent of home sales.
Consistent job gains, wage growth and resilient consumer spending should benefit commercial real estate, offsetting negative factors such as global economic downturns and domestic uncertainties, according to real estate firm Transwestern, MBA NewsLink reported June 21.
The number of downtown apartments is growing an average of 5 percent per year as millennials and baby boomers flock to cities — but vacancies also are on the rise, which may signal a construction slowdown, National Real Estate Investor reported June 21.
The number of hotel rooms in the planning and construction phase in May grew nearly 20 percent year-over-year, with the largest 26 markets accounting for nearly half the construction activity, according to hospitality data firm STR, MBA NewsLink reported June 23. New York City has the most rooms under construction.
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