Choose your path
The Federal Reserve’s Federal Open Market Committee voted against a rate increase at its April 10 meeting, but minutes indicate that they would consider such a move if the economy steadily improves, CNBC reported. Any future rate hike isn’t expected until at least 2020.
The Federal Reserve on April 8 proposed new rules for foreign banks that would categorize the institutions based on risk to the financial system, MarketWatch reported. The new requirements would separate liquidity rules from capitalized subsidiaries for the institutions, boosting liquidity thresholds by as much as 4%.
Investors still view the industrial sector favorably, despite labor shortages and global trade tensions — ongoing trade talks between the U.S. and China could greatly reduce demand for industrial real estate if no deal is reached, according to real estate services firm Colliers International, National Real Estate Investor reported April 8.
The retail sector continues to experience tumult, with vacancy rates increasing in 28 of the 77 metros tracked by analytics firm Reis, MBA NewsLink reported April 11. However, new stores are opening in each metro and effective and asking rent were up 0.4% in the first quarter.
Foreclosure activity during the first quarter was down 23% from the previous quarter, and reached its lowest level since the first quarter 2008, according to the Q1 2019 U.S. Foreclosure Market Report released April 9 by analytics firm ATTOM Data Solutions. March foreclosure filings dropped 21% from the prior year.
First-time homebuyers are not shut out of the market due to high prices and lack of inventory, and in fact, the number of first-time property purchases has remained steady throughout the housing market’s many ups and downs, according to a report from the Federal Reserve Bank of New York, HousingWire reported April 10.
Nearly 60% of Americans aged 18 to 23 would like to buy a home in the next five years, and already are saving for the purchase, according to a Bank of America survey released April 11, Bloomberg reported. Survey respondents prioritized buying a home over weddings, shopping and travel.
The number of consumers who believe now is a good time to buy and sell a home is up, pushing the Fannie Mae Home Purchase Sentiment Index to its highest point since last June, and signaling a strong homebuying season, Fannie Mae reported April 8.
The housing market is expected to bifurcate this spring, with demand for homes near or below the $250,000 price point increasing and demand for homes priced above $750,000 decreasing, according to Lawrence Yun, chief economist for the National Association of Realtors, HousingWire reported April 10.
Newark, New Jersey, is most at risk for a housing crash, with 27.9% of homes there underwater, 6.4% of homes delinquent on their mortgage and a high vacancy rate for rental units, the finance website GoBankingRates reported April 8. Detroit and Bridgeport, Connecticut, rounded out the top three on the list.
Mortgage rates saw a slight increase during the past week, but mortgage applications fell due to rate increases experienced the previous week, Freddie Mac reported April 11 in its Primary Mortgage Market Survey. Mortgage rates are expected to stay low and boost buyer demand over the coming months.
The Appraisal Institute on April 17 announced that its 2018 Annual Report is available. The report highlights AI’s accomplishments during the previous year in education, professional services, international activities, government relations, meetings, financial performance, professional practice and other areas.
Pop up content here.