Commercial, multifamily originations set to increase in 2016
Originations of commercial and multifamily mortgages will rise by 6 per cent in 2016. The Mortgage Bankers’ Association predicts that the sector will rise to $485 billion. "Borrowing and lending in commercial and multifamily real estate markets is strong," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research. "Interest rates that have stayed lower longer than most anticipated, and continued growth in property incomes and values are all pushing mortgage origination levels higher." Commercial/multifamily mortgage debt outstanding is expected to end 2016 at $2.8 trillion, 1.8 percent higher than at the end of 2015.
Mortgage rates edge lower
Average mortgage rates were slightly lower in the week ending October 29 compared to the weak prior. The Freddie Mac Primary Mortgage Survey shows that the average rate for 30-year ARMs was 3.76 per cent, down from 3.79 per cent; 15-year ARM’s averaged 2.98 per cent, unchanged the previous week; 5-year FRM’s averaged 2.89 per cent, unchanged from the previous week; 1-year FRM’s were down to 2.54 per cent from the previous week’s 2.62 per cent.
Metros most at risk from zombies
A new report ranks the largest metropolitan areas by their ability to survive an influx of zombies although this is not your average real estate analysis. For Halloween weekend CareerBuilder ranked the metros not for zombie properties but for their ability to withstand a zombie apocalypse. The index is scored on eight different factors in four categories: ability to defend against the standard, flesh-eating virus transmitted via biting, ability to contain the virus, ability to find a cure and ability to outlast the epidemic with an ample food supply. Boston, Salt Lake City, Columbus, Baltimore, Virginia Beach, Seattle, San Diego, Kansas City, Denver and Indianapolis are ranked most likely to withstand the attack with New York, Tampa, LA, Riverside-San Bernardino, Chicago, Miami, Jacksonville, Milwaukee, Providence and Las Vegas most at risk. Happy Halloween!