This age group make up most US renters (and it’s not millennials)
Higher home prices and weak wage growth has been a barrier for many young Americans but a new study into the US rental market shows that it’s not dominated by millennials. Harvard University's Joint Center for Housing Studies revealed that almost 51 per cent of renters are 40 or older, 22.4 million households. During the housing peak in 2005 the proportion of over-40 renters was 47 per cent.
The research suggests that many former homeowners who lost their homes in the crash have not returned to the market: "Middle-aged households in particular bore a big brunt of the housing crash," Christopher Herbert, managing director of Harvard's Joint Center for Housing Studies told the Journal Sentinel. Baby Boomers are also making up a larger proportion of renters Mr Herbert said. The trend is under pressure though as higher rents make mortgage payments look increasingly attractive despite the soon-to-rise interest rates.
Freddie Mac, ABA renew alliance for mortgage banks
Freddie Mac and the American Bankers Association have renewed their alliance to assist ABA members with their mortgage lending business. The deal offers enhanced pricing, mortgage products and training. The alliance has been in operation for more than a decade and Freddie Mac’s Chris Boyle commented: "We take special pride in our relationship with ABA and look forward to providing their member banks with continuous support in today's growing purchase market."
Prices up in Maryland
Maryland home prices increased in November, reversing a trend from recent months. The Maryland Association of Realtors reported that average prices increased by 3 per cent and median prices were up 3.2 per cent compared to November 2014. “We are pleasantly surprised with the uptick in home prices in November,” said 2016 MAR President Bonnie Casper. Casper also noted that “home sales generally remain strong, along with pending sales, which were up by more than 700 homes. Given that the end of the year can be a slow period for residential sales, the statistics for November are very encouraging.” Sales activity was up 8.2 per cent year-over-year although individual counties showed disparity with sales declining in 11 counties.