Tag Archives: Investment

Multifamily lenders provided a total of $146.1 billion in new mortgages for apartments with five or more units--a 33 percent increase from 2011, according to data from the Mortgage Bankers Association (MBA). "In many ways we were in a golden age of multifamily finance in 2012, that to a large extent continues today," said Jamie Woodwell, MBA's VP of commercial real estate finance. "Low interest rates, strong property fundamentals and increasing multifamily property prices are all supporting a very favorable lending environment."

Investment bank FBR's third-quarter mortgage originations estimate is $349 billion, a 29 percent decline over the quarter. The abating refinance market is a major drag on the mortgage industry, and, "[w]e do not believe that there will be a strong enough increase in the purchase market this quarter to offset the loss in refi volume," FBR stated. FBR estimates a 46 percent decline in refinances in the third quarter and a 2 percent rise in purchase originations.

HomeVestors of America and Local Market Monitor together released a ranking of the most promising investment markets for the third quarter of 2013.

Household net worth improved $1.3 trillion in the second quarter--half as fast as the first quarter--as real estate values grew $626.7 billion, the Federal Reserve reported Wednesday in its quarterly Flow of Funds report. But, with a drop in mortgage debt--including home equity loans and lines of credit--from $9.39 trillion in the first quarter to $9.34 billion in the second--homeowner equity grew to 49.8 percent in the second quarter from 48.1 percent in the first.

Data from the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey shows a drop in traffic in August for all three groups of homebuyers.

As home price appreciation continues at accelerated levels, John Burns Real Estate Consulting is warning clients in certain areas to keep in mind the artificial boosting effect that home flippers bring to the market. "Home price appreciation has been so rampant, particularly in California and Florida, that flippers and get-rich-quick scam artists are flourishing again," said Chris Cagan, VP at John Burns. "Just as in the mania of 2004-06, flippers make money when the party is raging, but inevitably, someone loses when the party is busted."

The Federal Home Loan Bank of Chicago is teaming up with Ginnie Mae to provide member institutions with easy access to the secondary market through the Mortgage Partnership Finance (MPF) program.

While price gains may paint a picture of a recovery well on its way, construction figures aren't as encouraging, according to an analysis from Trulia. While prices are up 11 percent year-over-year in August, according to Trulia, which monitors list prices, construction activity is lagging. Additionally, when it comes to price gains and increases in construction, markets tend to be experiencing one or the other, with markets reporting price growth seeing meager construction.

The choice of the new Fed chair takes on added significance given the Fed's relationship with the Consumer Financial Protection Bureau.

In its mid-year multifamily outlook for 2013, Freddie Mac notes that multifamily market fundamentals such as rents and vacancies continue to improve, with New York, San Francisco, Denver, Seattle, and Los Angeles all seeing marked growth. At the same time, supply presents a problem, the analysts said. While starts have seen growth over the last several years, completions are still lagging, and the gap between the two measures continues to grow wider.