Median sales prices for all types of residential real estate are soaring. According to the monthly HomeUnion Home Sales Report, prices for investment houses and owner-occupied homes increased 12.6 percent from one year ago to $266,500. The all-cash segment of the SFR sector also grew dramatically: then median sales price soared 21.2 percent to $186,500 in August year-over-year.
“Anyone taking out a mortgage, including SFR investors, will be able to leverage properties at historically low rates,” explains Steve Hovland, director of research for HomeUnion.
“Mortgages on those assets, meanwhile, can be covered by rising rents. This explains both the recent surge in activity among investors acquiring SFRs and last month’s continued price growth for owner-occupied housing.”
Below is a complete breakdown of August housing market conditions:
For more real estate information, including a FREE Home Market Analysis and Market Area Statistics, please contact us at 866-977-7623.
Average fixed mortgage rates have dropped slightly from last week's post-Brexit high, according to Freddie Mac's recently released Primary Mortgage Market Survey® (PMMS®).
"The 10-year Treasury yield declined after last week's post-Brexit high in anticipation of the Fed's September policy meeting,” says Sean Becketti, chief economist, Freddie Mac. “The 30-year fixed-rate mortgage followed Treasury yields, falling 2 basis points and settling at 3.48 percent. Despite the decrease in rates, the Refinance Index plunged 8 percent to its lowest level since June.”
The 15-year FRM this week averaged 2.76 percent with an average 0.5 point, down from last week when it averaged 2.77 percent. A year ago at this time, the 15-year FRM averaged 3.08 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.80 percent this week with an average 0.5 point, down from last week when it averaged 2.82 percent. A year ago, the 5-year ARM averaged 2.91 percent.