Is Wall Street Building Steam for the Next Real Estate Bubble?
Warren Buffet really opened up a can of worms when he made the statement in the Spring of 2012 that he would buy "a couple hundred thousand" single family homes and hold them for a long time, at low mortgage rates. The moment that statement came from his lips, every hedge fund in the Country decided they were going to get into the business of single-family homes, and they certainly have!
Record-Low Long-term Mortgages Are Helping to Brighten Economic Outlook
The average US rates on fixed mortgages recently fell steeply and moved closer to historic lows, a shift favored by many in the mortgage marketplace. Freddie Mac, one of the country’s largest mortgage buyers, announced Thursday, April 11th, 2013, that the average rate for the 30-year fixed loan fell to 3.43 percent from 3.54 percent the previous week. These figures are very close to the 3.31 percent that was reached in November 2012, which also represented the lowest percentage recorded since 1971. The average rate on the 15-year fixed mortgage also dipped to 2.65 percent from 2.74 percent the previous week with figures only slightly above the record low of 2.63 percent in 1971.
The Red-Hot U.S. Rental Market Begins to Level Off
Apartment hunters in the United States found average rent prices higher than expected in the first quarter of 2013. The cost of renting a home could still go up a little more in the near future, but not by much. Landlords have been enjoying several months of rent increases, but this windfall seems on the verge of finishing.