Today’s News Synopsis:
Construction on multifamily properties decreased 2.6% last month according to HUD and the Commerce Department. Mortgage delinquency rates decreased to 4.71% at the end of the first quarter of 2017 according to the Mortgage Bankers Association. Fannie Mae released their latest Economic and Housing Outlook, showing they expect the second quarter to pick up following a slow first quarter.
In The News:
NAHB – “Multifamily Drop Brings Down Housing Production 2.6 Percent in April” (5-16-2017)
“Led by a decline in multifamily production, nationwide housing starts fell 2.6 percent in April to a seasonally adjusted annual rate of 1.17 million units, according to newly released data from the U.S. Department of Housing and Urban Development and the Commerce Department.”
CNBC – “Homebuilders are targeting millennials – but it will hit their margins” (5-16-2017)
“The largest generation is finally starting to buy houses. The trouble is, there aren’t enough houses for sale to feed their appetite, at least not enough they can afford.”
Mortgage Bankers Association – “Delinquencies Decline in Latest MBA Mortgage Delinquency Survey” (5-16-2017)
“The delinquency rate for mortgage loans on one- to four-unit residential properties decreased to a seasonally adjusted rate of 4.71 percent of all loans outstanding at the end of the first quarter of 2017.”
Realtor.com – “Back to the ‘Barndominium’: 6 Newly Converted Barns Looking for a Buyer” (5-16-2017)
“When you walk into your home, you want it to feel—for lack of a better word—homey. As such, a hulking metal structure probably wouldn’t score high in a ranking of cozy and inviting homes. However, these massive, industrial-look barns are the housing craze currently sweeping through Texas.”
Bloomberg – “25 Million Americans Could Find Mortgage Tax Break Useless Under Trump’s Plan” (5-16-2017)
“U.S. Treasury Secretary Steven Mnuchin has taken pains to stress that the Trump administration isn’t out to kill Americans’ beloved mortgage-interest tax deduction — but a side effect of the plan could turn it into a perk for only the wealthy.”
Fannie Mae – “Another Second Quarter Rebound Likely to Follow First Quarter Slowdown” (5-16-2017)
“Growth expectations for 2017 remain at 2.0 percent, according to the Fannie Mae Economic & Strategic Research (ESR) Group’s May 2017 Economic and Housing Outlook.”
Freddie Mac – “Expanded Freddie Mac AIMI (SM) Shows Seasonal Slowdown; Continued Strength of Multifamily Market” (5-16-2017)
“Today, Freddie Mac (OTCQB: FMCC) announced it has released its quarterly update to the Multifamily Apartment Investment Market Index(SM) (AIMI(SM)), and has added Boston to the list as the 14th major metropolitan market covered. AIMI is a free online analytical tool that combines multifamily rental income growth, property price growth and mortgage rates to provide a single index that objectively measures multifamily market investment conditions.”
Bloomberg – “Rich Retirees Are Hoarding Cash Out of Fear” (5-16-2017)
“There’s a time in everyone’s life to save. There’s also a time when you’re supposed to spend. That time is commonly known as retirement. Millions of Americans aren’t doing that, however, which has put the U.S. in a perverse situation.”
Hard Money Loan Closed
Los Angeles, California hard money loan closed. Real estate investor received loan for $232,000 on this single family property.
Bruce Norris will be speaking at the AOA “Million Dollar” Trade Show & Landlording Conference 2017 on Wednesday, May 24.
Bruce Norris will be speaking at The Southern California Chapter of the Appraisal Institute’s 20th Annual
Inland Empire Market Trends on Thursday, June 1.
Aaron Norris will be presenting his latest talk Technology Trends and Effects on Real Estate with NorcalREIA on Wednesday, June 14.
Confidence in home building remained relatively unchanged at 58 according to the NAHB. Bank of America was finally pushing ahead with the $8.5 billion settlement with Bank of New York Mellon. Forecasts for mortgage rates put them around 4% according to the Mortgage Bankers Association.
For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6 pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.