Styldod’s fortnightly news digest is back. This time in real estate news, we will be touching upon the hike in mortgage rates, the increased diversity among homeowners, the cooling down of the US real estate market, and other news. Scroll down to get a quick update on what’s happening in the world of real estate.
Here are the hottest news from the world of real estate this fortnight.
The Freddie Mac fixed rate for a 30-year old loan leaped to 10 basis points this week. Mortgage rates became 2.87% due to anticipation of the rising consumer prices and inflation rate from investors. It was also fuelled by the improved economic conditions due to the third weekly drop in unemployment insurance claims, says the real estate news. The rates are expected to remain below 3% until the Fed clarifies a timeline for the anticipated tapering of monthly mortgage-backed securities purchases.
According to newly released 2020 Census Bureau data, the US population is now more multiracial than ever before, with people of color making up 43% of the total population in 2020. This has been reflected in the housing market as well. According to a real estate news report by the Urban Institute, Hispanics are expected to dominate 70% of net new households through 2040. They are followed by the Asian-American population, who saw the largest homeownership rate increase for any ethnic group from 52% in 1980 to 60% in 2019.
The pandemic resulted in a hysteric real estate market in the US, with demand for housing bowling out the number of homes hitting the market. However, the market started cooling off in July, resulting in steady home prices at $385,000 from June to July. “It is just moving from super hot to normal hot; it is still a sellers’ market,” said Lawrence Yun, the chief economist for the NAR.
Source: The New York Times
July offers good news to first-time homebuyers as the number of smaller homes hitting the market grew, according to Realtor.com. In July, the number of homes for sale declined 33.5% year-over-year. If this trend continues, homes will be available to first-time buyers at affordable prices, says the real estate news. Although new listings growth is still below pre-pandemic levels, more new sellers set foot in the market in July (+6.5% year-over-year).
Millions of Americans have not received the emergency rental assistance promised in Biden's American Rescue Plan. Out of the $25 billion federal money poured into states to help renters, only $3 billion ($6.5%) had been distributed to landlords and their tenants as of the end of June. A slow start, computer hitches, and a complex application process have meant the money isn't getting to many renters and landlords.
Source: USA Today
Real estate agents have reason to be optimistic in the coming weeks as the housing market cools down and diversity grows in homeownership. This is a great time for first-time homebuyers as the number of smaller homes hitting the market grows.
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